Foreign Investment in Germany Plummets, Bundesbank Reports

A significant drop in direct investments highlights Germany's struggle to attract foreign capital amid rising energy costs.

Germany has seen a sharp decline in foreign direct investments since the end of 2021, according to Bundesbank data.
Investment from other Eurozone countries has stagnated, while inflows from non-European countries have significantly decreased.
Between 2020 and 2021, foreign companies invested over €100 billion in Germany, but this figure fell to €62 billion by mid-2024.
The drop is attributed to high energy prices and increased competition from other European nations like France and Spain.
The Brexit and reduced investments from the UK have also contributed to the decline, though the US and Netherlands remain key investors.