Germany Foreign Investment Falls 9.3% to 1,564 Projects as China Overtakes U.S.
Updated
Updated · Reuters · May 21
Germany Foreign Investment Falls 9.3% to 1,564 Projects as China Overtakes U.S.
2 articles · Updated · Reuters · May 21
1,564 foreign investment projects were recorded in Germany in 2025, down 9.3% from 2024 and marking a fourth straight annual decline to the lowest level in nearly a decade.
U.S. companies pulled back on new sites and expansions, while high capital costs pushed many firms toward acquisitions or mergers instead of greenfield investment, GTAI said.
China became Germany's biggest source of projects with 228, overtaking the United States at 206—the U.S. total its lowest since 2016.
€11.8 billion of planned investment was roughly half the 2024 level, and expected job creation fell to about 25,000 from nearly 30,000.
GTAI said the drop was still milder than the broader slowdown, with Germany's decline about half as steep as Europe overall and slightly below the global trend.
As China replaces the US as Germany's top investor, is Berlin swapping one dependency for another?
Why are Chinese and Indian investors still betting on Germany as American companies pull out?