Berlin, May 2, 2024 – Foreign investors in Germany continued to curtail their activities last year. The number of announced investment projects in the country fell by 12% to 733, the lowest level since 2013, according to a report by EY consultancy, as reported by TASR news agency on Thursday.
The number of investment projects has been declining for six consecutive years, reaching its lowest level since 2013, when Germany attracted 1,124 projects. In 2019, the year before the COVID-19 pandemic, there were 971. EY has been monitoring trends in foreign investment in Germany since 2006. The company did not provide information on the volume of investments.
Since 2017, the number of foreign investment projects in the world’s largest economy has fallen by 35%. The United States remained the most significant investor in the country in 2023, but the number of projects by US companies fell by 22%.
According to EY, several factors are behind the decline in investment, including:
- Rising energy prices
- Supply chain disruptions
- Geopolitical uncertainty
Despite this trend, EY still sees Germany as an attractive destination for foreign investment due to its strong economy, stable political environment, and skilled workforce.
Sources:
Additional information:
- EY’s report on foreign investment in Germany is available on EY’s website: https://www.ey.com/en_us.
- More information on the German economy can be found on the website of the German Federal Agency for Investment and Trade: https://www.gtai.de/
Key points:
- 12% decline: The number of investment projects in Germany has been falling for six consecutive years. Compared to 2017, they have plummeted by 35%.
- US investment falls: Despite remaining the most significant investor in the country in 2023, the number of projects by US companies fell by 22%.
- Factors behind the decline: Rising energy prices, supply chain disruptions, and geopolitical uncertainty are among the factors contributing to the decline in investment.
- Still an attractive destination: Despite the downward trend, EY still sees Germany as an attractive destination for foreign investors due to its strong economy, stable political environment, and skilled workforce.
However, to maintain its position as an attractive destination for foreign investors, Germany will need to address the current challenges, such as rising energy prices, supply chain disruptions, and geopolitical uncertainty.
