, Columnists
Germany Isn't Investing as in the Past and That's a Problem
- Borrowing costs have never been lower, domestic demand is high
- Yet there's little no sign of an investment boom any time soon
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All the pieces appear to be in place for a surge in corporate investment in Germany -- except one critical element.
While low borrowing costs, robust domestic consumption and capacity strains mean companies should be itching to spend, the confidence to do so is lacking. Market turmoil, signs of a weaker global demand and Germany’s own aging population are giving bosses plenty of reason to hold back, leaving capital spending as a share of output clinging stubbornly to a five-year low.