Talking point
Capital stock of many industrial sectors is crumbling in Germany
In the German manufacturing sector real net fixed assets in 2013 were 0.8% lower than in 2000. Looking at the average, however, masks the fact that only four out of 19 manufacturing sectors expanded their capital stock compared with 2000. The major importance of the automotive industry is striking. Its net fixed capital formation exceeded that of all other manufacturing sectors combined between 1995 and 2006 and has done so since 2009. The auto industry boosted its real net fixed asset in Germany between 2000 and 2013 by nearly 38%. In the energy-intensive sectors, by contrast, the capital stock in Germany continues to shrink, a trend that has been ongoing for years. If economic policy conditions in Germany were to deteriorate in future, we would expect manufacturing companies to invest even more heavily abroad. [more]
Logistics in Germany: Only modest growth in the near term
The logistics sector in Germany is characterised by innovative and diversified companies as well as very good location factors. There are, however, economic and structural factors which suggest that turnover growth will be relatively moderate over the next few years. Between 2003 and 2008 sector turnover grew by a nominal 4.6% per year. Following the recession, that is from 2009 to 2014, the growth rate dropped to 3.4% p.a. (while the inflation rate was somewhat lower). Over the next five years average annualised nominal turnover growth is likely to be more in the range of between 2% and 3%. This would propel sector turnover through the EUR 300 bn barrier. The logistics sector will remain a focus of state regulation; this is true particularly of the important transport segment. [more]
Hot off the press
German companies in Latin America: How have they fared?
German foreign direct investment (FDI) is increasingly located in emerging markets. Improved macro-economic conditions and a superior growth outlook have been the main reasons for the rising importance of emerging markets as a destination for German FDI in recent years. Latin America holds a relatively stable share of close to 5% in the outward stock of German investment, equivalent to some EUR 42 bn. However, the deterioration in growth prospects in some Latin American countries might have negative consequences for German FDI in the region. [more]
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