Berlin Wall: German economy in 'superior shape' to UK

Barings' Robert Smith says its no surprise his German Growth fund has outperformed the majority of UK portfolios over the past year, as Europe's largest economy is in "far superior shape".

As highlighted by Germany already exiting its recession, the manager says small and mid cap stocks on the continent can continue to thrive in an increasing pro-business environment. "If you had to bet on the German economy or the UK, I would go with Germany," he says. "While the UK is raising taxes, the recent German election was a good result for business - the Government has a strong agenda on tax cuts and growth. "Germany also gives you access to a lot of companies which you cannot get in the UK market, such as chemicals and a large solar energy sector. It is not dominated by th...