Germany's economy is recovering extremely well as it expanded by 3.6% last year, and while this was partly to be expected from such a deep recession it was also due to carefully implemented government measures. These measures ensured that unemployment was kept at its lowest level since 1992 which has ensured a feeling of prosperity in the country with business confidence at its highest level for 20 years.
Germany has always been very good at keeping its public finances under control and it had the added advantage of not experiencing any credit or property bubble, and it has also concentrated on keeping export levels high. Its central geographic position also enabled it to take advantage of cheaper labour from eastern European countries increasing the efficiency of firms. One of its biggest export markets is China as luxury German cars are in high demand, as is machinery for Chinese factories.
While the economy may be booming house prices in Germany are still surprisingly affordable especially when compared to similar properties in the UK. There have been indications in recent months that the property market is beginning to benefit from continuing consumer confidence and that the strong economy is drawing in new investors. The continued recovery has also meant that the construction of new homes has begun once more although anyone choosing to invest here should regard it as a long term prospect. The fact that a high proportion of the population choose to rent rather than own makes this country extremely attractive for buy to let investors.
No comments:
Post a Comment