2025 German FDI Posts "Moderate" Decline Amidst World Slowdown

BERLIN, May 21, 2026 /PRNewswire/ -- Germany Trade & Invest's annual report on foreign direct investments shows a mild drop last year in the number of greenfield and internal expansion projects.

A total of 1564 foreign direct investment (FDI) projects were implemented in Germany in 2025. That's 9.3 percent fewer than in the previous year. The volume of the expansions dropped by nearly 50 percent. Such are the findings from the FDI Report 2025 published today by Germany Trade & Invest (GTAI).

Nonetheless, Germany performed stably by international comparison. The number of foreign investment projects declined globally by 9.5 percent, and in the EU by 18.1 percent, in 2025.

"The figures, compiled with the Federal Republic of Germany's regional states, reflect planned new investments and expansion projects by international companies in Germany," explains GTAI Managing Director Achim Hartig. "Amidst a challenging global environment, Germany remains a robust business location. The decline here is moderate by European standards.

Hartig adds: "International uncertainties such as tariffs and trade conflicts mean that companies are more cautious at present about investment decisions. This is a global phenomenon that is also affecting other locations."

Europe remains the most important source region for investments. With 228 projects, China overtook the US (206 projects) as the leading source country. In terms of sectors and industries, digitalization, electronics and automation, and mobility and logistics lead the way.

"It is worth noting that nearly 20 percent of companies are planning investments in production and research and development - this underscores Germany's appeal as a modern industrial location," says Hartig. "In our discussions with investors, they highlight as positives the tight integration of industry, science, and research, as well as the legal certainty and the skilled workforce in Germany. At the same time, reducing bureaucratic hurdles remains an important issue for further strengthening the country as a business location."

You can access the full FDI Report at: www.gtai.com. 

Germany Trade & Invest is the German government agency for international business promotion and is owned by the Ministry for Economic Affairs and Energy. It helps international companies do business in Germany and German companies do business abroad. 

Press Contact:
Jefferson Chase, Senior Communications Manager, Germany Trade & Invest, Friedrichstrasse 60, 10115 Berlin, Germany.
jefferson[email protected]
+49 30 200099170 

SOURCE Germany Trade & Invest