Study Shows Crisis-Resistant Germany Remains Top FDI Destination

Germany Trade & Invest's annual survey of foreign direct investment indicates that, despite a variety of challenges, companies are continuing to expand at a high rate in and to Europe's largest economy.

BERLIN, May 12, 2025 /PRNewswire/ -- 1724 companies from abroad announced greenfield and expansion projects last year – that's according to 2024 FDI Report compiled by Germany's international business promotion agency Germany Trade & Invest (GTAI).

The figure was down two percent from 2023 but comparable to numbers from the past five years. The volume of international business projects amounted to EUR 23.2 billion euros. That's the third-highest amount ever recorded for Germany and well above pre-Covid levels.

"Given the massive economic challenges Germany, Europe and the world have faced over the past year, the number and volume of FDI projects is remarkably good," says the COO of GTAI Robert Hermann. "Germany has proven very stable and resistant to global crises. Companies from around the world see Germany as an excellent place to do business, which is why they're choosing to expand here."

The volume of investment reflected the large number of big-ticket projects launched by some of the world's largest multinationals.

"The biggest companies are naturally attracted to the size and significance of German market," says Hermann. "And that's making the country even more attractive to SMEs as well."

35 percent of companies expanding to and in Germany come from the European Union. The largest single country of origin was the US, followed by Switzerland, China, the United Kingdom and the Netherlands.

17 percent of business investment projects took place in the digital sector, followed by energy and resources (16 percent), electronics and automation (15 percent), and mobility and logistics (13 percent). Another trend is the resurgence of manufacturing and R&D investments (20 percent).

"These numbers contextualize and relativize some of the recent negative headlines about German growth," says Hermann. "Germany remains the economic heart and powerhouse of Europe. So it's still a top location for international companies looking to expand their business."

The 2024 FDI report is based on data from the 16 regional states of the Federal Republic of Germany. It includes greenfields, expansions and relocations but excludes mergers and acquisitions.

Full report: https://www.gtai.de/en/invest/business-location-germany/foreign-direct-investment 

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

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SOURCE Germany Trade & Invest