Posted by Pierfrancesco Manenti
Manufacturing helped Germany
recover from the last recession faster than any other major
industrialized country. Will rising investments drive its manufacturing
future?
By Pierfrancesco Manenti
A recent Time
magazine article titled “How Germany Became the China of Europe”
characterizes Germany as the competitive powerhouse of the European
region. The figures are certainly convincing. While the Eurozone saw a
modest 1.7% growth in GDP in 2010, Germany reached 3.6% in GDP growth.
Expectations are that economic expansion will continue, with another
solid 3.3% in GDP growth this year, too.
This
strong economic performance has its roots in Germany’s vibrant
manufacturing industry. Over the last 10 years, while many other
countries were rapidly growing on the back of creative financial
services, Germany implemented substantial workforce reforms. It raised
the retirement age, and increased labor flexibility to reduce
unemployment and lower costs. This helped create the most competitive
industrial sector of any advanced European economy, according to recent
study by Deloitte that also ranks Germany eighth worldwide.
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