Investment by foreign companies in Germany increased sharply in 2025. Foreign direct investment (FDI) rose by 50 percent year on year to 86 billion euros, the German Economic Institute (IW Köln) announced on Monday. There have been major shifts in where that capital comes from: US companies invested significantly less in Germany, while considerably more money arrived from the United Kingdom.
According to the IW, the increase in FDI is also explained by a collapse in 2024. Investment fell by almost 32 percent that year.
"Direct investment flows fluctuate from year to year and can be distorted by individual larger transactions," the experts cautioned. "In addition, the figures are often revised upwards or downwards after the fact." Even measured against the median value for the years 2015 to 2024, however, 2025 still shows an increase of almost 11 percent.
US investment in Germany slumped by 44 percent last year to 11.8 billion euros, according to the calculations. Its share of total FDI therefore shrank from 36 percent to 14 percent. British investors, by contrast, increased their commitments by 284 percent to 26 billion euros. They now account for 31 percent.
There were also marked increases in investment volumes from China, Chile and Saudi Arabia. In terms of their share of total FDI, however, these countries continue to carry little weight.
By far the largest portion of foreign investment capital in Germany originates from other EU countries, the IW says. Despite a slight decline of 2.7 percent, EU investment in Germany still accounts for a good 50 percent of all foreign investment, at 43 billion euros.
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