About German Economy



Taking in considerate small business condition for investing overseas, Germany, easly, could consider as a very good destination if aiming a small business development overseas.


This is not exactly an instruction text about how to create a small business in Germany, but I need to pick up some points, about small business creation in that place, to make clear what exactly is going on in German economy.


The German Economy: Beyond the Social Market  

Mr.Draghi (ECB's President) talking about inflation issues in Europe (deflation) and Mrs. Merkel is admitting this opinion on German economy. But what exactly happen in German economy? German people lived in a spectacle growth. This is shown on the prices, on the life cost and of course on the inflation. All imported goods and many local produced goods become too expensive compare to other European countries, especially to those new added in the European family of East Europe. Germany has a high import of new immigrants and still the ability to offer new jobs. Germany host also a strong bank system which offers an low interest for bank account holders but also high assurance, compare to the East European Banks and government's bank account assurance ability. So Germany shows an incomparable capability to host East Europeans savings in her banks. This explain the money flow, banks can get cheap money and can drain money to the market. What is happening to Germany is not exactly a critical situation of deflation this is the adjustment of the economy in normal and smoother going level to ensure a life long continuation. Is just a normal slow down of the economy to make sure the continuation.



Is this a good moment for a small business entrance?

The main problem in Germany's big cities is the sheltering cost. And as soon the demand for homes is in a continues ingression, rend cost is going to be the last of the economy indexes to adjust. Consuming is in a high level, compare to east Europe, or also to some of the western Europe countries (Spain and Portugal) but is in a downtrend so adding also other factors of business creation in Germany, as is the demand for high quality products.

German consumers are strict criticizer and good updated about quality conditions and generally real mature consumers, there is no place for chap investment. Germany offers a high quality of public and private services, even if the execution speed remains relative low, the cost is too high.

A forecast, about how long is going to take the German economy adjustment, is not easy, there are also other issues affecting the whole procedure as the coming retail crisis for example, as well how would be the form of the new build economy in Germany. In this conditions the stable German economy is actually unsupported for small business entrance in the market, which has difficulties to survive a new start under this conditions.



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