Germany recorded 1,564 foreign investment projects in 2025, a 9.3% decline from 2024 and the lowest level in nearly a decade, marking the fourth straight year of decline, according to reports released May 21, 2026 [1, 2, 3]. This decline was described by Achim Hartig of GTAI as "a significant decline".

EY reported a different figure of 548 foreign direct investment projects for 2025, down 10% from the previous year and the lowest since 2009 [4, 5]. EY Germany CEO Henrik Ahlers said, "Poor revenue and profit performance, along with uncertain economic outlook, have forced many companies to delay or cancel investments" [5].

Sources also differ on the largest source of foreign projects. According to GTAI data, China overtook the United States with 228 projects compared to the US's 206 in 2025 [1, 2, 3]. However, EY reported that the US remained the top investor [5]. India entered the top 10 foreign investment source countries in Germany for the first time, with 43 projects [2, 3]. Taiwan launched eight investment projects, notably including TSMC's chip design center in Munich, important for Germany’s semiconductor supply chain, as noted by Achim Hartig [2, 3].

Foreign companies planned to create about 25,000 jobs in Germany in 2025, down from nearly 30,000 the year before [1]. The planned investment value was around €11.8 billion ($12.8 billion), roughly half of 2024’s level [1].

Germany’s GTAI emphasized priority sectors for investment including semiconductors, renewable energy, electric vehicles, digitalization, future technologies, and healthcare [2, 3]. German investment in defense and dual-use industries increased, supported by EU and national funds [2, 3].

High costs, bureaucratic delays, and rigid administrative procedures were cited as major barriers to foreign investment [1, 2, 5, 3]. Hartig said investors most frequently complain about delays in administrative "speed" [2]. German authorities are taking steps to digitalize administration and speed approvals to reduce these barriers [2, 3].

Global factors weighing on investment include geopolitical tensions and uncertain US trade policies, impacting planning decisions worldwide, including in Germany [2, 3]. Despite challenges, Hartig noted Germany’s stable political and legal environment, market scale, and innovation capacity as continuing attractions for investors [2].

The data release and GTAI press conference on May 21, 2026 summarized these trends and figures for 2025 foreign direct investment in Germany [1, 2, 3].