German Firms Eye US Investments Amid High Energy Costs at Home
(Bloomberg) -- German companies facing soaring energy costs see the US as the most attractive global investment destination, a survey showed.
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Lower energy prices alongside tax benefits from President Joe Biden’s Inflation Reduction Act are boosting the appeal of the US, according to the poll of 3,100 German firms active abroad by the Association of German Chambers of Industry and Commerce, or DIHK.
“For companies in the US, the Ukraine war is far away and the economic effects therefore much less palpable,” Matthias Hoffmann, who heads the German-American trade chamber in Atlanta, said Thursday at a presentation in Berlin. On the Inflation Reduction Act, he said “German businesses are happy to take it along if they qualify for it.”
The report showed that 62% of German companies in North America evaluated current business as positive, higher than in any other region. Almost two-fifths intended to boost investments there, in line with responses by firms active in Africa and the Middle East. By comparison, only about a third said they’ll invest more in the euro zone, where more than half expect an economic downturn.
--With assistance from Zoe Schneeweiss and Elaine He.
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