In 2025, for the first time since 2003, Germany’s capital inflows exceeded its outflows. An analysis by the IW-an employer‑focused institute of the German economy-was reported in the Friday edition of “Handelsblatt”.
The study found that inflows surpassed outflows by about €10 billion. By contrast, in 2019 Germany faced a deficit of roughly €85 billion. “The balance looks pretty solid” said IW researcher Jürgen Matthes. “Foreign companies see Germany as an attractive location”.
Direct investment into Germany totaled €96 billion last year, well above the average since the turn of the millennium. Matthes noted that investors value certain qualities in Germany, even amidst concerns about over‑bureaucratization, legal certainty, and predictability. “In an increasingly uncertain world, boring calculability is apparently sexy” he added.
Corporate managers observe that interest in Germany has risen. Michael Kotzbauer, head of corporate banking at Commerzbank, described U.S. investors’ interest in German companies as “enorm” adding that it grew even further last year. Because of the unpredictable politics of former U.S. President Donald Trump, many U.S. investors are seeking opportunities to diversify risk. Claudio de Sanctis, head of private banking at Deutsche Bank, said that realizing infrastructure investments and pursuing reforms in Germany could give foreign investment a real boost.
