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German firms growing more optimistic

The mood among German firms brightened for the fourth month running in July amid signs that the worst may be over for Europe's biggest economy, the closely watched Ifo index showed on Friday.

German firms growing more optimistic
Photo: DPA

The Ifo institute’s business climate index for July rose to 87.3 points, beating market expectations of 86.5 points and up from 85.9 points in June. It was the highest reading since November 2008.

“Firms are not so unhappy with the current business situation as they were the previous month. Those surveyed are, again, less sceptical about the coming six months. It looks as though the economy is gaining traction,” it said.

The Ifo index measuring sentiment on current conditions among the 7,000 firms polled rose to 84.3 points from 82.4 points in June, while for business expectations the reading rose to 90.4 points from 89.5 points.

Chancellor Angela Merkel’s government expects the export-oriented German economy – it even has a trade surplus – to contract by around six percent this year, second only to Japan among advanced economies.

Unicredit economist Andreas Rees said the message from the Ifo survey was “unambiguous.”

“The worst recession ever in the last 60 years is now definitely behind us. We are raising the green flag for the second half of this year,” Rees said in a research note.

The survey tallied with upbeat comments on Monday from the Bundesbank and the finance ministry, both predicting that Germany’s worst slowdown since 1945 lost momentum in the second quarter.

The finance ministry cited as evidence the most recent hard data for the German economy – a rise in both industrial orders and production in May. In addition, German exports posted a slight rise of 0.3 percent in May from the previous month, leading some to predict that exports – on which the German economy is heavily reliant – have also turned the corner.

In the first quarter, gross domestic product (GDP) slumped 3.8 percent. Second quarter growth figures are set for release on August 13.

A threat to economic recovery is nonetheless posed by rising unemployment and deteriorating credit conditions and the government is trying to convince banks to lend more to businesses so the first signs of growth are not stamped out.

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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