Rapid Economic Recovery in Germany

Over the summer, German companies are intoxicated with optimism, this not only with the pessimism common in sharp contrast, also filled in the United States and other parts of Europe, the strong contrast between the gloomy atmosphere.

A strong contrast between the market

Global stock markets after the baptism of the financial tsunami, national index returns appear very different. United States, Japan and other major developed countries, almost annihilated, into a morass of deleveraging, but only Germany and a few developed countries still maintain a positive return.

From September 15, 2008 to September 15 this year to 2 years, the German DAX index gained 0.43% a rare positive earnings, while the Standard & Poor’s 500 index was off 10.12%, the Nikkei 225 index fell more cumulative 22.09%.

German stock market performance this year is better than most European stock markets. DAX Index gained 3% this year, while over the same period the FTSE 100 index rose about 0.2%, the French CAC40 fell 6.7%, Italy and Spain, the market fell 11%.

As the world’s most important stock index DAX index is one of Germany’s “barometer.” Since the 90s of the 20th century, the German economy continues to slump, but has been known as the “sick man of Europe” of Germany has changed dramatically this year.

German Economy Minister Lainabulv Chandler said this strong economic growth in Germany as a “king-recovery” and its efforts to break up large enough to have accumulated 20 years of the German sense of unease.

Since German reunification in 1990, Germany has the second-quarter GDP for the first time this year, a rare 2.2% growth, investors can not help but cry, after almost 20 years after suffering like hell, “German Heroes” has been returned.

At present, the German unemployment rate fell for 14 consecutive months, 7.3% unemployment rate and flat rate of unemployment in Canada, the United States less than 2 percentage points.

Deutsche Bank AG said the German company annual profit will reach 6.8 percent average growth rate, compared to the global average growth rate of enterprises was only 1.3%. Lloyds’s of Scottish Widows Investment Partnership’s investment manager Michael Wasserman believes that with the continued increase in industrial orders in Germany also remained robust domestic economy.

Manufacturing recovery

Such a good performance on the German market is considered 20 years the results of Germany’s economic transformation. German exports outside the EU, almost all concentrated in heavy chemical industry, led by machinery. As a strong manufacturing export-oriented country, Germany has been in the area occupied a strong position.

During the economic crisis, the German economy is extremely depressed, particularly in the manufacturing industry capacity utilization significantly attenuated. After the global economic recovery, the emerging countries affected by the financial crisis and shallow, rapid economic rebound, the focus has shifted to emerging export markets in Germany become the biggest beneficiary.

Analysts pointed out that Daimler will benefit from the emerging market demand for well-off middle-class car, while the U.S. truck sales also will boost the company’s business. The manufacturer Daimler-Benz is the world’s largest commercial vehicle manufacturer, the world’s second-largest luxury car maker, the second largest truck maker.

Hochtief is Germany’s largest contractor, is the world’s largest international contractors. Before 2003, the company has been losing money in Europe and the Americas business was weakening. But after 2005, Hochtief revenue from the Asia Pacific region accounted for the total amount of its revenue overseas, 3 / 4. Asia-Pacific region’s strong demand for investment in infrastructure will substantially improve the company’s operating income.

Aberdeen equity investment manager Louise Kernohan said the German company’s financial situation is better, generally have a sound balance sheet, the German industrial might in the next few months outstanding. He pointed out that the truck maker MAN, iron and steel giant ThyssenKrupp, industrial gas supplier Linde and BMW are good investment options.

The world’s largest luxury car maker BMW AG of Germany announced a two and a half earlier this month, the highest quarterly profit, driven by rising demand in China and the United States.

Aberdeen Asset company to the German stock “overweight” rating, in order to European markets as the object of their funds in equity investments in Germany 16% of their portfolio.

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