Foreign private investments into Germany have recently stalled. According to an analysis of data from the German Federal Bank (Bundesbank), only 42.7 billion euros in foreign direct investment flowed into the country between January and August of this year-roughly half of the amount recorded in the same period last year. The “Frankfurter Allgemeine Sonntagszeitung” reports that this drop marks the lowest level of foreign investment during this period within the last decade.
This performance challenges a recent period of recovery. Although the German government had projected an overall increase in foreign direct investments for 2025, this growth had primarily been supported by funds from other European countries, while investments from the United States were receding.
To counter this trend, the government is hosting an “Invest in Germany Summit” next week at the Hertie School of Governance in Berlin. Participating in the summit will be Chancellor Friedrich Merz (CDU), six relevant ministers, and the Chancellor’s investment coordinator, Martin Blessing. They are expected to discuss investment opportunities in Germany with industry leaders, including Larry Fink, CEO of Blackrock, and Valérie Baudson, CEO of Amundi.
