The Cologne Institute for Economic Research (IW) has just released their latest findings on which countries proved most favorable as industrial locations, and Germany now sits closer to the top by taking 5th place. Germany has steadily moved up over the years due to the stable supply of energy and raw materials, a good education system, developed infrastructure, and a reliable regulatory framework when compared to the 45 leading world economies ranked in the study.
Listed at the top is the United States, where a large potential customer base and evidently low level of bureaucracy keeps it ahead. Sweden, Denmark and Switzerland also placed ahead of Germany in this year’s study.
If Germany wants to move further up in the rankings, there are a few areas that the country can improve upon according to the IW. With a total of 58 indicators involved in determining a country’s ranking, Germany suffers from high labor costs, high employer tax burdens, and a growing trend of unskilled workers. These can be tough hurdles for Germany, and even though the distance between Germany and the second through fourth placed countries is small, the emerging markets of China, Brazil and Russia are inching closer to the top.
Source: Cologne Institute for Economic Research
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