Foreign investment in Germany declines for the third year in a row

Foreign direct investment (FDI) into Germany fell for the third consecutive year in 2024, the German International Trade and Investment Promotion Agency (DTI) said on Monday.

Last year, the number of new facilities and expansions reached 1,724, down from 1,759 projects in 2023—a 2% decrease year-on-year—1,783 projects in 2022, and 1,806 projects in 2021.

Foreign direct investment fell more sharply in Europe last year, by 4.6%, and by about 6% in Western Europe, according to data from the International Investment Agency.

Foreign companies announced investments totaling €23.2 billion ($25.83 billion) in 2024, down from record amounts of €34.8 billion in 2023 and €25.3 billion in 2022, due to catch-up effects following the pandemic.

The United States remained the largest foreign investor, with three major projects from Amazon, Microsoft, and Apple in 2024 and a total of 229 relocation or expansion projects.

Switzerland came in second place with 202 projects, ahead of China with 199 projects, the United Kingdom with 137 projects, and the Netherlands with 97 projects, according to GTII data.