German companies prefer foreign investment to domestic – DIHK

By Maria Martinez

BERLIN (Reuters) – German companies are more likely to invest in international locations than in Germany, a survey of the German Chamber of Industry and Commerce (DIHK) and the German Chambers of Commerce Abroad (AHK) showed on Tuesday.

A third of the 3,600 companies surveyed were planning to invest more in their international locations over the next 12 months, while a fifth intend to invest less, the survey showed.

However, according to another study recently published by the DIHK, companies in Germany are more likely to reduce their investments in the country (36%) than to increase them (24%).

“This discrepancy between domestic and foreign investment shows once again that companies in Germany urgently need reliable and attractive framework conditions,” said DIHK head of foreign trade Volker Treier.

Companies are planning higher investment particularly in North America, North Africa, the Middle East and the Asia-Pacific region, excluding China and Taiwan.

The survey shows a particular interest in India. “Our member companies are very optimistic and have major investment plans for the coming years,” said Stefan Halusa, managing director of AHK India.

In Europe and China, on the other hand, companies were more cautious, the survey showed.

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