(Bloomberg) -- Germany isn’t particularly attractive as a business location, according to the latest Ifo Institute Economists Panel.

The body of 180 economic professors gave Europe’s biggest economy a score 3.4 on a scale of 1 to 6. Almost one in four assigned it one of the two lowest grades — 5 or 6. 

“This poor result is quite worrying for Germany as an industrial nation,” said Niklas Potrafke, director of the Ifo Center for Public Finance and Political Economy. “Improving Germany as a business location calls for reforms.”

The survey comes after data showed that the German economy grew again in the first quarter, underscoring hopes that it’s overcoming its recent industry-led malaise.

But despite the improved short-term outlook, longer-term challenges remain – regularly leading to tensions in the coalition government.

Respondents in the Ifo survey cited bureaucracy, the price of energy, the availability of raw materials and the lack of digitalization as Germany’s main weaknesses.

In addition to reducing red tape, Germany would benefit from “increasing public investment in infrastructure and digitalization, as well as adjusting the retirement age to life expectancy,” Potrafke said.

Among the country’s strengths, the professors at German universities highlighted political institutions, the education and training of employees as well as security and low geopolitical risks.

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