The main factor holding firms back in Europe’s biggest economy is a shortage of skilled labor, the IW economic institute in Cologne said.
In 2014, the Boston Consulting Group warned that Germany was not only facing the problem of declining labor force, but also the lack of skills that employers were looking for.
The institute predicted that Germany would suffer from a shortage of employment of 2.4 million workers in 2020, seen to rise to 10 million in 2030.
Because of the need for a simple business workforce, the Chairman of the Federal Agency for Employment in Germany is demanding that rejected asylum-seekers whose temporary deportation has been suspended for various reasons, such as health reasons, be given the opportunity to prepare for a career in Germany.
“Despite the protectionist policies of US President Donald Trump and prospect of Brexit, investment in Germany rose this year and will strengthen further in 2018,” said IW in a statement.
Only two sectors were pessimistic - the food industry, which is worried about tougher competition and higher costs, and sections of the cooperative banking sector which are suffering from low interest rates and margins.
The IW said 24 of the 47 industry associations which gave investment estimates, expect higher spending levels from their member companies, Reuters reported.
“The production prospects in the German economy could be better if more skilled workers were available,” said IW Director Michael Huether.
