Germany’s Economy

1260 WordsMar 7, 20126 Pages
Germany’s Economy: Today’s Confidence and Future Challenges Business expectations of German enterprises are improving from the entire spectrum of the economy. The recovery is domestically driven and – more than expected – driven by exports. For the first time, Germany is ranked as the world’s best logistics location. All in all entrepreneurs have confidence in the economic revival; they are investing and hiring. Besides creating new jobs, companies also need to increase their productivity and operate closer to full capacity. But despite the current euphoria, companies are aware of the future challenges. State of the Economy The German economy continues to grow strongly this year. Overall the DIHK (Association of German Chambers of…show more content…
The largest increase of risk evaluation can be seen of skills shortage. This holds especially true for mechanical engineering, IT-service providers, nursing, health services and even the catering industry. Skill shortage is in particular a challenge for small enterprises that have no large human resource management available. Providing the economy with qualified workers, will probably be the main challenge in the next years. n TOP-risks Expectations for the Next 12 Months (in percentage) beginning of the year 2011 beginning of the year 2010 energy & commodity prices domestic demand labour costs skills shortage foreign demand* foreign exchange rate* financing * industry without construction 18 16 17 26 16 23 30 34 35 37 40 49 Source: World Bank 10 9 8 7 6 5 4 3 2 Germany is an ideal logistics location for numerous reasons. The country size and prosperity make it a major customer in the goods market. Its central location in Europe enhances its role as a transport hub and the polycentric economic structure requires shipping services. The high level of industrialisation and trade openness generate additional goods flows. Furthermore, the high network density and high quality of the transport infrastructure are unique in Europe. 65 42 0 10 20 30 40 50 60 70 Source: DIHK Economic Risks Despite the current positive outlook, the threats
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