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 percent of respondents, 20 percent gave a 2, 17 percent a 4, and 20 percent a 5. “This poor result is quite worrying for Germany as an industrial nation,” says Niklas Potrafke, Director of the ifo Center for Public Finance and Political Economy.
The respondents cited bureaucracy (87 percent), the price of energy and the availability of raw materials (73 percent), and the lack of digitalization (67 percent) as Germany’s main weaknesses. Among its strengths, the experts cited political institutions (67 percent), the education and training of employees in Germany (53 percent), and security and low geopolitical risks (43 percent).
“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.
The survey ran from April 16 to April 23, 2024, with 180 professors of economics taking part.
The detailed results are available here: https://www.ifo.de/en/facts/2024-05-03/economists-panel-reform-proposals-for-germany
