The Eurozone economy represents a strong opportunity for investors in 2016, with Germany the 'jewel in the crown', according to Baring Asset Management. The company says that growth in the Eurozone will continue to accelerate through government spending that is driven by immigration, which is a positive boost for the German economy.

The Baring German Growth Trust returned 19.9% in 2015 and Robert Smith, investment manager of the Baring German Growth Trust, comments: "We are particularly optimistic on Germany. As a far larger exporter to its European counterparts than any emerging market, I do not expect it will notice the reduction in emerging markets' imports as we believe the growth of the Eurozone economy will continue to accelerate. We are positive on industrial investment outside of oil and mining and we see good growth opportunities in IT, especially with the transition to cloud technology."

The falls in global oil prices are seen as good news for the wider European region and Germany is expected to benefit strongly from any Eurozone recovery.

Demand for property continues to rise
Catella released a report on the German residential market on the 18th of February, which analysed 77 different investment locations. The report found that: 'Ongoing strong demand for residential property in metropolitan areas, and in locations with favourable population balance, is underpinned by urbanisation effects and structurally good economic conditions in Germany. The increasing appeal of residential markets will lead to higher rental prices and a rise in property values.'