Germany's competitiveness on the global market is of increasing importance. Its attractiveness for foreign investors is crucial, for their investments create or preserve jobs and help further develop technology.
The globalization of the economy further increases Germany's dependence on the world market. Yet at the same time, globalization means that people's lives all over the world are ever more closely interconnected.
The common responsibility of all states to ensure stable economic development for the benefit of everyone is becoming increasingly apparent, and in view of political conflicts it is more true than ever that trade and a dense network of economic links create trust and stabilize international relations.
It is therefore the task of Germany's foreign policy to both promote and protect German economic interests in the world and to help foster the further development of just and sustainable global economic cooperation.
Germany as a Location for Business and Investment
The rise in direct investments in Germany by international companies also underlines the good position of the German economy. Economic life in Germany is more international in nature than in most other major industrial nations. One in three euros in Germany is generated through exports; nearly one in four jobs depends on exports.
The most important branch of the economic activity in Germany with traditionally a very high share of total economic production is industry. The 49,000 German industrial undertakings employ nearly 6.4 million staff. Together they generate turnover of more than EUR 1.3 trillion. 98 per cent of all German industrial undertakings are small or medium-sized companies (SME) with 500 or fewer staff. SME generate around 33 per cent of industrial turnover.
Alongside industry, the services sector also plays an outstanding role and has now become almost as large as industry. A German peculiarity and traditional core of economic life is the crafts trade. With around 863,000 businesses, it is Germany's most varied economic sector - employing 14 per cent of Germany's 36 million workers.
If more information about Germany as a business location is required, the companies can get fast and non-bureaucratic Support on GTAI - Germany Trade & Invest. GTAI answers questions on the economic situation in Germany as well as on basic legal conditions, tax regulations, conditions of entry and residence, development measures etc.
AUMA – Association of the German Trade Fair Industry
AUMA represent and enhance the interests of exhibitors, organisers, service companies and visitors on the national and international market. They combine and enhance the strengths of the German trade fair industry and provide you with different trade fair information and services on their platform.
The Federation of German Industries (BDI)
BDI works to ensure that Germany remains an industrialized country, one that is export-oriented and innovative. This can only be achieved on the basis of the social market economy built on the market, entrepreneurship, competition, trade and private property. Find out more about BDI here.
The Promotion of Foreign Trade
External economic promotion is one of the Foreign Service's main tasks. Along with its over 220 missions abroad, the Federal Foreign Office uses a broad range of measures worldwide to support German firms engaged in foreign markets.
The missions' economic sections are above all keen to help small and medium-sized companies doing business abroad: The staff of the German embassies and consulates-general as well as that of headquarters in Berlin see themselves as political mentors and facilitators, networkers, and advisors.
Alongside traditional external economic promotion as a way of supporting German economic interests abroad, marketing for Germany as a location for business has emerged in recent years. In our globalized economy, investment from abroad helps us develop new technologies and create or secure jobs in Germany.
Germany's system of external economic promotion is supported by government and business alike. The foreign missions (embassies and consulates), the German Chambers of Commerce abroad, Delegate Offices and Representations of German Industry and Commerce as well as the German Office for Foreign Trade form the three pillars of external economic promotion. All three establishments are present in the world's key export markets. In foreign countries, companies can always rely on the support of the German foreign missions as a Partner.