Overview
- The employer‑associated IW estimates foreign direct investment into Germany reached €96 billion in 2025, more than doubling from €43 billion in 2024.
- German companies invested about €86 billion abroad, marking the first year since 2003—excluding the 2020 pandemic anomaly—when inflows exceeded outflows.
- The figures are extrapolated from Deutsche Bundesbank data covering January through November 2025, so final official totals may be revised.
- IW trade expert Jürgen Matthes says predictability and legal security are drawing investors, citing tariff threats and erratic policy under U.S. President Donald Trump as context.
- As an example of the policy backdrop, Volkswagen has held back an Audi plant plan in the United States over tariff costs, while economists report that Trump’s tariffs raise consumer prices and weigh on German growth.