In an international comparison of business locations, economics professors gave Germany a grade of just 3.4 (on a scale of 1 to 6, where 1 is the best score). This is according to the latest ifo Institute Economists Panel. A grade of 3 was awarded by 38% of respondents, 20% gave a 2, 17% a 4, and 20% a 5.
'This poor result is quite worrying about Germany as an industrial nation,' says Niklas Potrafke, Director of the ifo Centre for Public Finance and Political Economy.
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The respondents cited bureaucracy (87%), the price of energy and the availability of raw materials (73%), and the lack of digitalization (67%) as Germany's main weaknesses. Among its strengths, the experts cited political institutions (67%), the education and training of employees in Germany (53%), and security and low geopolitical risks (43%).
'Improving Germany as a business location calls for reforms. These include reducing bureaucracy, increasing public investment in infrastructure and digitalization, as well as adjusting the retirement age to life expectancy,' Potrafke says.
More information:
ifo Institute
www.ifo.de