German Industry Shifts Investments Abroad Amid Rising Domestic Costs

High energy prices, bureaucracy, and taxes are driving German companies to expand overseas, marking a significant shift in investment priorities.

A DIHK survey reveals that 35% of German companies cite cost reduction as the main reason for foreign investments, the highest since 2008.
Traditionally focused on market expansion, German firms are now prioritizing cost-saving measures in their international investments.
The Eurozone remains the top destination for German investments, but interest in North America is growing, with 48% of companies planning investments there.
Domestic investment in Germany is declining, with two out of five industrial firms planning to cut back on local spending.
Ongoing coalition negotiations in Germany include proposals to reduce energy taxes and bureaucracy to address these economic challenges.