Signature Capital Limited

Main Markets

Germany

Germany is home to more than 82 million people, making it the most populous country in the European Union. Germany is the world’s third largest economy, with a GDP of $2.8 trillion in 2007. Germany has also been the world’s largest exporter since 2003 and its companies have exported just under $1000bn worth of products, almost as much as the UK, France and the Netherlands combined.

There are a number of factors which have allowed the German economy remain relatively unaffected from the current economic turmoil:

  • Firstly internal and external driving forces to the German economy remain stable with the global economy expected to keep growing even if at a slower pace than in recent years.
  • Its economy does not have an over reliance on the construction or retail sectors as many other developed countries.
  • German consumers' confidence posted a surprise but modest rise in November 2008. The Nuremberg-based GfK market research institute's survey showed the consumer confidence index edged up to 1.9 for November from 1.8 in October, helped along by an increase in income expectations on the back of falling inflation.
  • Domestic investment remains robust and there are signs that private consumption will increase further in 2009 which should act as a driver for CPI linked property rental increases. The German government also plans to stimulate internal consumer spending in 2009 by pursuing an ambitious plan of public-work projects.
  • The banking sector has remained stable and has largely been able to steer clear of the US sub prime crisis.
  • German unemployment fell more than expected in October, defying the worldwide economic slowdown. Germany's labour market has so far managed to escape the fallout from the financial crisis triggered by the global credit crunch. This resulted in the unemployment rate edging down from 7.6 per cent in September to 7.5 per cent in October. It is the first time in 16 years that Germany's jobless rate logged below 8 percent.

These factors together with wide spread wage increases are what we believe makes the German market so attractive.