Germany vs Japan
A data-driven side-by-side: investment score, economy, business climate, political stability, and tax — to help you decide where to invest, incorporate, or relocate.
Overall: Germany ranks higher
Germany scores 85/100 on our composite investment index, ahead of Japan at 82/100. This blends economic strength, political stability, business climate, financial maturity, and growth outlook. Read the breakdown below to see where each country actually leads.
Category breakdown
82
Economic strength
Germany leads
80
90
Political stability
Germany leads
88
88
Business climate
Germany leads
85
86
Financial maturity
Germany leads
72
62
Growth outlook
Germany leads
55
Macro snapshot
4,460
GDP (USD bn)
+230.0 bn
4,230
0.3%
GDP growth (%)
-0.7 pp
1.0%
$52,000
GDP per capita (USD)
+18000.0
$34,000
2.9%
Inflation (%)
+0.2 pp
2.7%
1.8%
FDI (% of GDP)
+1.0 pp
0.8%
65%
Public debt (% of GDP)
-190.0 pp
255%
84
Population (M)
-40.0M
124
Germany — strong sectors
- Manufacturing20.0% of GDP90
- Automotive6.0% of GDP82
- Technology7.0% of GDP80
- Energy4.0% of GDP72
Japan — strong sectors
- Technology8.0% of GDP88
- Automotive5.0% of GDP85
- Manufacturing20.0% of GDP82
- Financial Services6.0% of GDP78
Frequently asked
Which is better for investment: Germany or Japan?
Our composite investment index gives Germany a score of 85/100 and Japan a score of 82/100. Germany ranks higher overall, but the right answer depends on your sector and risk tolerance — see the category breakdown above.
Is Germany a safer market than Japan?
Risk classification puts Germany as safe (Strong fundamentals, stable governance, favorable investment climate) and Japan as safe (Strong fundamentals, stable governance, favorable investment climate).
Which has higher GDP growth: Germany or Japan?
Germany is currently growing at 0.3% per year, vs 1.0% for Japan. Japan has the faster headline growth rate today.