Germany's 2025 Foreign Investment Data Announced

The German Economic Institute (IW) announced the 2025 foreign direct investment data for the country with calculations based on data from the German Central Bank (Bundesbank).

Accordingly, the amount of direct investment made by foreign capital companies in Germany last year was recorded as 86 billion 145 million euros.

Although investments showed sharp movements on an annual basis due to fluctuations in the global economy and large-scale individual transactions, the level reached last year was 11 percent above the median value of the 2015-2024 period. Thus, after the 32 percent contraction in 2024, the rebalancing process in foreign direct investments began.

THE UNITED KINGDOM TAKES over THE LEADERSHIP FROM THE USA

The data revealed that there were radical changes in the ranking of countries exporting capital to Germany. Despite the sharp decline in investments of US companies, the record increase in capital inflows from the UK lifted the country's investment performance.

Accordingly, investments of US companies in Germany decreased by 44 percent in 2025 compared to the previous year, falling to 11 billion 763 million euros.

With this development, the share of the USA in total foreign investments in Germany decreased from 36 percent to 14 percent.

The United Kingdom filled the gap left by the United States. Investments of British companies in Germany reached 26 billion 365 million euros, with a record increase of 284 percent.

With a share of approximately 31 percent in total investments, the United Kingdom left behind the United States and became Germany's largest single source of foreign capital.

Although investments from China increased by 51 percent to 199 million euros in the same period, their share in the overall total was limited to 0.2 percent.

Investments from Saudi Arabia increased by 43 percent, reaching 1 billion 88 million euros, and Chilean investments increased by 41 percent, reaching 2 billion 836 million euros.

THE MOST INVESTMENTS ARE FROM THE EUROPEAN CONTINENT

The main center of foreign capital coming to Germany continued to be the European continent.

European Union (EU) member countries provided 43 billion 122 million euros in funding to Germany in 2025, despite the slight decrease of 3 percent in their investments. This amount corresponded to more than half of total foreign investments.

When the United Kingdom is included, more than 80 percent of the foreign capital entering Germany was from Europe. Experts emphasized that these data show that the Berlin administration's closest and most stable economic ties remain with its European neighbors.