Foreign Investment in Germany Falls to Lowest Level in Nearly a Decade
Decline in Foreign Investment Projects and Shifting Trends
By Rene Wagner
BERLIN, May 21 (Reuters) - Foreign investment projects in Germany fell to their lowest level in nearly a decade last year as U.S. companies held back on new sites and expansions, the Germany Trade & Invest (GTAI) body said on Thursday.
Investment Project Statistics and Year-on-Year Comparison
The state development agency recorded 1,564 foreign investment projects last year, down 9.3% from 2024 and the fourth consecutive annual decline.
Expert Commentary on the Decline
"That is a significant decline," Achim Hartig, GTAI's investor acquisition expert, told Reuters, adding that the drop was still only about half as steep as in Europe overall and slightly below the global trend.
China Overtakes U.S. as Top Foreign Investor
Country Rankings for Foreign Investment
China overtook the United States as the biggest source of foreign investment projects in Germany, with 228 projects, while U.S. projects fell to 206, their lowest level since 2016.
Other Leading Countries
Switzerland ranked third with 174 projects, followed by Britain and the Netherlands.
Impact on Jobs and Capital Investment
Foreign companies planned to create around 25,000 jobs, down from nearly 30,000 a year earlier, and invest about €11.8 billion ($12.8 billion), roughly half the 2024 level, GTAI said.
Reasons for the Decline in New Projects
Hartig said many firms were avoiding new sites because of high capital costs and were instead opting for acquisitions or mergers to gain access to established structures.
(Reporting by Rene Wagner, writing by Maria Martinez, editing by Madeline Chambers)
