International Companies German Investments More Than Doubled in 2025

Foreign companies put EUR 96 billion into their German business, compared with EUR 43 billion in 2024, says a new study by the think-tank German Economic Institute (IW).

BERLIN, Jan. 26, 2026 /PRNewswire/ -- The report, which is based on figures from Germany's national bank, the Deutsche Bundesbank, states that, with the exception of the coronavirus pandemic, international companies invested more in Germany than German ones did abroad (EUR 86 billion) for the first time since 2003.

The IW attributes the positive balance to Germany's fundamental economic and political stability.

"In an increasingly uncertain world, predictability counts more than it used to," said IW trade expert Jürgen Matthes. "Amidst global competition, legal certainty and calculability are an advantage for Germany as a business location."

"With their single market, Germany and the EU offer international investors barrier-free access to approximately 450 million consumers," says Julia Braune, CEO of Germany Trade & Invest.  "Germany welcomes companies from all over the world, which benefit from stable framework conditions and a high degree of legal certainty."

"If you compare protectionist markets with the EU's internal absence of customs duties, you'll see that the latter enables efficient supply chains. It also reduces costs through harmonized regulations. The close economic integration of the member states creates an attractive investment environment that promotes economies of scale and growth potential."

"The latest IW figures show that Germany was again one of the most attractive destinations for international business investment in 2025," adds Julia. "This trend is in line with a global one. The United Nations Conference on Trade and Development reports a 14 percent increase in direct investment worldwide, which amounts to USD 1.6 trillion, with growth concentrated in developed economies. The fact that Germany is benefiting disproportionately in this environment underscores the confidence international companies have in the stability and reliability of Germany as a business location."

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. 

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

SOURCE Germany Trade & Invest