Foreign Investment in Germany Soars 50% Driven by European Capital Influx
Economy / Finance

Foreign Investment in Germany Soars 50% Driven by European Capital Influx

According to calculations by the Institute of the German Economy (IW), based on data from the Deutsche Bundesbank, foreign companies invested approximately €86 billion in Germany in 2025. This figure represents a significant 50 percent increase compared to the previous year.

After foreign investments saw a substantial drop of nearly 32 percent in 2024, the investment figures stabilized in 2025, with the total value sitting almost eleven percent above the median recorded between 2015 and 2024.

While US investments declined sharply by almost 44 percent, the United Kingdom experienced a dramatic turnaround, increasing its investments by 284 percent to reach €26 billion. This positions the UK clearly ahead of the US, accounting for nearly 31 percent of all foreign capital directed toward Germany.

Other regional movements show varied growth. Chinese investments rose by approximately 51 percent; however, they remained a marginal player, contributing only €199 million (0.2 percent) to the total. Similarly, investments from Chile and Saudi Arabia both saw strong growth, increasing by over 40 percent each.

Overall, the bulk of the foreign investment capital continues to originate from Europe. EU states, excluding Germany, injected around €43 billion into the German market, making up a solid 50 percent of the total foreign investment. When the United Kingdom is factored in, Europe accounts for over 80 percent of all external investment in Germany.