Germany's Foreign Investments: A Declining Trend

Germany has seen a decline in foreign investments for the third consecutive year according to Germany Trade & Invest. In 2024, the number of new and expanded establishments dropped to 1,724 from 1,759 in 2023. Major investors include the United States, Switzerland, and China.

Germany has experienced a decline in foreign investments for the third year in a row, as reported by Germany Trade & Invest (GTAI). In 2024, the country witnessed 1,724 new and expanded foreign projects, down from 1,759 in 2023, highlighting a 2% year-on-year decrease.

Across Europe, foreign direct investment fell more sharply, recording a 4.6% decline. Western Europe saw nearly a 6% drop. In Germany, foreign companies announced a total of 23.2 billion euros in investments, a significant decrease compared to the previous year's 34.8 billion euros, as post-pandemic catch-up effects waned.

The United States continues to be Germany's top foreign investor, with major projects from Amazon, Microsoft, and Apple. Following the U.S., Switzerland, China, the U.K., and the Netherlands were also prominent investors, according to GTAI data.