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Location Germany is attractive: more money from outside
Germany🏛️ PoliticsCenter9/2/2026

Location Germany is attractive: more money from outside

Foreign investors are increasing their capital investments in Germany, according to calculations by the employer-friendly Institute for Economic Research (IW). In 2025, foreign investments rose by nearly 11 percent compared to the previous ten-year average, reaching 86 billion euros. This follows a sharp decline of 32 percent in 2024. The majority of these investments come from European neighbors, particularly the UK and EU countries, which together account for more than 80 percent of all foreign investment. Investments from the United States dropped significantly by 44 percent, attributed partly to uncertainty caused by U.S. President Donald Trump’s trade policies. Chinese investments increased but remained at a low level of 199 million euros. Experts highlight Germany’s strong legal framework and education system as factors attracting foreign investment.

Foreign investment into Germany surged last year, marking a sharp rebound after a steep decline in 2024. According to calculations by the employer-friendly Institute for Economic Research (IW) in Cologne, published on Monday, foreign direct investments rose by 50 percent to 86 billion euros in 2025. This followed a drop of nearly 32 percent in 2024. The IW compared this figure with the median value over the previous ten years, showing an increase of almost 11 percent. The data comes from new Bundesbank figures analyzed by the institute. The rise in foreign capital flows has been driven largely by European neighbors. More than 80 percent of all foreign investments came from the United Kingdom and other EU states. Investors from EU countries accounted for half of all foreign investments, amounting to 43 billion euros, a slight decrease of 2.7 percent compared to the previous year. However, investments from the UK saw a dramatic increase of 284 percent, reaching 26 billion euros. This surge was attributed to large individual transactions, such as the acquisition of a majority stake in the German pharmaceutical company Stada by the British investment firm CapVest through a billion-euro deal. In contrast, investments from the United States fell sharply by 44 percent to 11.8 billion euros. Their share of total foreign investments dropped from more than 36 percent to just 14 percent. Samina Sultan, an expert in European economic policy and trade at the IW, linked this decline to the economic policies of U.S. President Donald Trump, who frequently imposed tariffs, prompting responses from affected countries. She noted that companies remain uncertain due to unclear regulatory frameworks. Chinese investments increased by 50 percent but remained minimal at 199 million euros, representing just 0.2 percent of total foreign investments. Other notable increases were recorded from Chile and Saudi Arabia, both seeing growth of more than 40 percent. Despite these changes, European countries continue to be the primary source of foreign investment, with non-UK EU nations contributing 43 billion euros, or roughly half of all foreign investments. The shift in the origin of investments highlights changing dynamics in international business relations. While the United States' influence has waned, the UK's role has grown significantly. This trend underscores the importance of stable legal conditions and a robust education system in attracting foreign capital, according to Sultan. She emphasized that Germany still hosts highly productive companies, which contribute to its continued appeal as an investment destination. The study also reveals broader implications for Germany’s economy. With the overall increase in foreign investments, there is potential for sustained economic growth, although challenges remain. The IW experts have revised their growth forecasts downward, predicting only a 0.5 percent growth rate for 2026. These projections reflect ongoing uncertainties and the need for clear economic policies to maintain investor confidence. The political landscape in Germany adds another layer of complexity. The looming success of the far-right Alternative for Germany (AfD) in upcoming state elections indicates the growing strength of right-wing forces. This situation emphasizes the need for unity and solidarity, particularly with local communities working to strengthen civil society. Efforts to support such initiatives highlight the importance of maintaining open societies and fostering civic engagement. As Germany continues to attract foreign investment, the interplay between economic stability and political developments will shape its future trajectory. The resilience of the German economy amid global uncertainties remains a critical factor in sustaining its position as a leading investment hub in Europe.

How this report was made. Objective News wrote this report from 4 source articles, using AI-assisted synthesis under our methodology. It is our own text, not a copy of any single outlet. Read our methodology.

Responsible editor: Matej BašaSpotted an error? Report it

4 reports

Tagesschau (ARD) logoTagesschau (ARD)State / PublicCenterFactual 90Objective 858/31/2026
Rapid increase in foreign investment in Germany

The article reports on a significant increase in foreign direct investments into Germany in 2025, according to a study by the Institute of the Economy in Cologne (IW), based on new Bundesbank data. Foreign investments rose to around 86 billion euros, representing a 50 percent increase compared to the previous year. The study notes that while there was a sharp decline in 2024, investments stabilized in 2025. However, the origin of the capital has shifted notably, with U.S. investments dropping by nearly 44 percent, while British investments surged by over 284 percent. Chinese, Chilean, and Saudi Arabian investments also saw substantial growth. Despite these changes, European countries remain the largest contributors, accounting for more than 80 percent of all foreign investments.

Bias read (Center): The article presents a balanced overview of investment trends without overtly favoring any particular political stance. It highlights both the overall increase in foreign investments and the shift in their origins, providing data-driven insights without taking a clear ideological position. While the

Why factuality (90): This article provides detailed figures from the IW study, including the 50% increase in foreign direct investments to 86 billion euros. It also notes the shift in investor origins, particularly the decline in U.S. investments, which aligns with other sources. The reference to the median of previous

Why objectivity (85): The reporting is balanced, noting both the overall increase and the change in origin countries. It presents the data without taking a clear stance on whether this is positive or negative, maintaining a neutral tone throughout.

taz – die tageszeitung logotaz – die tageszeitungIndependentCenterFactual 85Objective 808/31/2026
Location Germany is attractive: more money from outside

Foreign investors are increasing their capital investments in Germany, according to calculations by the employer-friendly Institute for Economic Research (IW). In 2025, foreign investments rose by nearly 11 percent compared to the previous ten-year average, reaching 86 billion euros. This follows a sharp decline of 32 percent in 2024. The majority of these investments come from European neighbors, particularly the UK and EU countries, which together account for more than 80 percent of all foreign investment. Investments from the United States dropped significantly by 44 percent, attributed partly to uncertainty caused by U.S. President Donald Trump’s trade policies. Chinese investments increased but remained at a low level of 199 million euros. Experts highlight Germany’s strong legal framework and education system as factors attracting foreign investment.

Bias read (Center): The article presents data on foreign investment trends in Germany without overtly favoring any political perspective. It cites expert opinions and provides statistical evidence without apparent ideological bias. While it mentions the potential impact of political factors like Trump’s trade policies,

Why factuality (85): The article cites data from the Institute of Economic Research (IW) in Cologne, aligning with the cross-source consensus that foreign investments increased by 50% to 86 billion euros in 2025. It mentions specific countries like the UK and EU as major contributors, which matches other reports. Howeve

Why objectivity (80): The tone remains neutral, presenting facts without overt bias. The article quotes an expert opinion but does not take sides on the implications of the investment increase. However, the mention of 'so schlecht, wie oft behauptet' suggests some level of counterpoint, though it's framed objectively.

Handelsblatt logoHandelsblattIndependent🔒CenterFactual 85Objective 808/31/2026
IW study: Foreign investment in Germany rises by 50 percent

A study by the Institute for Economic Research (IW) reveals that foreign investments in Germany increased by 50 percent. The report highlights a significant rise in direct investments from abroad, indicating growing confidence in the German economy despite ongoing challenges such as inflation and geopolitical tensions. The increase was particularly notable in sectors like manufacturing and technology, which saw substantial inflows of capital. The study attributes this growth to Germany’s strong industrial base and stable regulatory environment, although it also notes potential risks related to global economic uncertainty.

Bias read (Center): The article presents data from a reputable research institution without overtly favoring any political ideology. It reports on economic trends objectively, focusing on statistical findings and expert analysis rather than taking a partisan stance. While the topic has political implications due to its

Why factuality (85): This article confirms the 50% increase in foreign investments based on the IW study. It includes additional context about the German economy improving and the stock market reaching record highs, which aligns with the cross-source narrative. However, it omits some specifics present in other reports.

Why objectivity (80): The piece maintains a neutral tone, discussing economic improvements without taking a clear position on whether they indicate a full recovery. It uses standard economic terminology without emotive language, keeping the focus on factual updates.

Die Zeit logoDie ZeitIndependentCenterFactual 80Objective 859/2/2026
German Economy: Is this the beginning of the recovery?

The article discusses recent economic indicators suggesting a potential turning point in Germany's economy. It notes that GDP growth in the second quarter was stronger than initially expected, business sentiment has improved, the middle class reports better business conditions, industrial value creation is no longer declining, the DAX index reached a record high, and foreign direct investments increased by 50% last year. The Deutsche Bank has revised its economic outlook for the current year, doubling its growth forecast from 0.5% to 1.0%.

Bias read (Center): The article presents economic data and expert forecasts without overtly favoring any particular political stance. While the economic recovery is framed positively, there is no clear ideological leaning toward either left or right. The focus remains on factual economic indicators rather than partisan

Why factuality (80): The article summarizes the IW study, confirming the 50% rise in foreign investments. However, it lacks specific details such as country breakdowns or methodology, making it less comprehensive than the other reports. Still, it aligns with the general consensus on the investment growth.

Why objectivity (85): The tone is neutral, focusing on the economic indicators without expressing personal views. It frames the investment increase as part of broader economic signs of recovery, which is a common journalistic approach without injecting strong editorial bias.

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