66% of survey respondents expect institutional investors to increase their exposure to Germany over the next 12 months 40% of institutional investors expect German economic growth to exceed the forecast of 4.4%, compared to 20% who think it will be lower than this. A new survey of institutional investors in Germany and the US who collectively manage €44.37 billion of assets, reveals 80% believe the German Government has delivered a much more comprehensive package to support its economy and jobs than other major nations. The findings are from MBH Corporation plc, a diversified investment holding company listed on the Frankfurt and Dusseldorf Stock Exchanges that acquires successful, well established small to medium sized enterprises across multiple geographies and sectors.
Less loss in 2020, less growth in 2021
The German Government has forecast economic growth of around 4.4% in 2021, but 40% of professional investors interviewed for the survey think it will be higher than this, compared to 20% who believe it will be lower. When it comes to investing in Germany and German stocks, 26% of institutional investors expect professional investors to ‘dramatically’ increase their exposure here, and a further 40% expect it to rise slightly. However, like all countries looking to recover from the Covid-19 crisis, Germany will face many challenges.
In September, the German Government forecast that its economy will shrink by around 5.8% in 2020, but 62% of institutional investors believe it will be higher than this. It has been predicted that the German economy will recover to pre-pandemic levels by Q4 2021, but MBH Corporation’s research reveals just 28% of institutional investors believe it will achieve this before then, compared to 46% who believe it will take longer than this: “However, like everyone else, Germany faces huge challenges in getting its economy back to pre Covid-19 levels as soon as possible, but they are in a better position than most to achieve this.”