When it comes to investments, Germany brings up the rear – and will probably remain so for years to come

Excavation work near Magdeburg

Intel’s new chip factory is to be built on the site, in which the US group wants to invest 33 billion euros.

(Photo: Getty Images; Per-Anders Pettersson)

Berlin Germany as a business location is increasingly coming under pressure. Investments could still fail, despite the planned energy transition and industrial transformation. This is confirmed by a study by the Kiel Institute for the World Economy (IfW), which is available to the Handelsblatt. Accordingly, investments in Germany will hardly increase and will only increase by 2.2 percent by the end of 2024.

The comparative value is the fourth quarter of 2019, i.e. the normal level without the special effects of the corona pandemic and the Ukraine war. The figures refer to the so-called “fixed investments”, i.e. investments by all sectors of the German economy in all areas such as machines, buildings or technology.

Experts advise urgent countermeasures. Because in an international comparison of the world’s largest economies, Germany has been falling behind in investments for years. Now the Federal Republic threatens to be permanently at the bottom. Investments are expected to grow 7.2 percent in the UK by the end of 2024, 3.7 percent in the US and 4.2 percent in Japan.

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