Overview

• Foreign direct investment (FDI) in Germany dropped to 608 projects in 2024, the lowest level since 2011, marking a 17% decline from the previous year.
• US companies reduced their investment projects in Germany by 27% in 2024, the steepest drop among major European destinations.
• China became Germany's top foreign investor for the first time, with 96 projects in 2024, surpassing the US.
• EY cites high taxes, energy costs, regulatory hurdles, and economic stagnation as key factors eroding Germany's appeal to investors.
• German firms are increasingly shifting investment to Central and Eastern Europe, with a 22% rise in projects in the region in 2024.