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Germany foreign investment rises 50% to 86 billion euros in 2025
Foreign direct investment (FDI) in Germany rose by approximately 50 percent in 2025, reaching 86 billion euros, according to calculations by the Institut der deutschen Wirtschaft (IW). This increase follows a nearly 32 percent decline in 2024. The composition of investors shifted significantly: United Kingdom investments surged by 284 percent to 26 billion euros, making the UK the largest foreign investor in Germany with a 31 percent market share. Conversely, US investments dropped by nearly 44 percent to 11.8 billion euros, reducing the US share of total FDI from over 36 percent to roughly 14 percent. European nations, including the UK, continue to dominate, accounting for more than 80 percent of total inflows.
Separately, research from the Ifo Institute indicates that German companies are showing restraint regarding climate-related spending. In 2025, companies allocated an average of 9.3 percent of their investments to climate protection. Projections for 2026 and 2027 suggest this share will remain relatively stable at 10.6 percent and 10.5 percent, respectively. While the service sector plans the highest share at 12.2 percent for 2026, the construction industry is the only sector expected to see a further increase to 11.2 percent by 2027. Experts suggest that economic policy uncertainty, geopolitical risks, and export competitiveness may be influencing this cautious approach to green investments.
Entities
Deutsche Bundesbank · Germany · Gerome Wolf · Ifo Institute · Institut der deutschen Wirtschaft · Institute of the German Economy · United Kingdom · United States
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] High economic policy uncertainty contributes to corporate reluctance regarding climate investments.
- [● 2 SOURCES] Decreased export competitiveness and increased geopolitical risks may be causing companies to prioritize other investments. www.ad-hoc-news.de
- [● 7 SOURCES] Companies plan to allocate 10.5 percent of investments to climate protection in 2027. www.nachrichten-heute.net · www.ad-hoc-news.de · bonitet.com · www.zelenaslovenija.si · www.it-boltwise.de · +1 more
- [● 3 SOURCES] The planned increase in climate investments is not significant despite the peak demand needed to meet Paris Agreement goals. www.nachrichten-heute.net · www.ad-hoc-news.de
- [● 7 SOURCES] German companies spent an average of 9.3 percent of their investments on climate protection measures in 2025. www.nachrichten-heute.net · www.ad-hoc-news.de · bonitet.com · www.zelenaslovenija.si · www.it-boltwise.de · +1 more
- [● 6 SOURCES] Service providers plan the highest share of climate investments at 12.2 percent for 2026. www.nachrichten-heute.net · www.ad-hoc-news.de · bonitet.com · www.zelenaslovenija.si · www.fehmarn24.de
- [● 7 SOURCES] Companies plan to allocate 10.6 percent of investments to climate protection in 2026. www.nachrichten-heute.net · www.ad-hoc-news.de · bonitet.com · www.zelenaslovenija.si · www.it-boltwise.de · +1 more
- [● 7 SOURCES] The construction sector is the only industry planning to increase its climate investment share further to 11.2 percent in 2027. www.nachrichten-heute.net · www.ad-hoc-news.de · bonitet.com · www.zelenaslovenija.si · www.it-boltwise.de · +1 more
- [● 8 SOURCES] Foreign direct investment in Germany rose by approximately 50 percent in 2025 to reach 86 billion euros. www.alborsaanews.com · www.allgaeuer-zeitung.de · www.zeit.de · radioosnabrueck.de · wochentlich.de · +2 more
- [● 7 SOURCES] United Kingdom investments in Germany increased by 284 percent to 26 billion euros. www.alborsaanews.com · www.allgaeuer-zeitung.de · radioosnabrueck.de · wochentlich.de · biznis.rs · +1 more
- [● 6 SOURCES] European countries, including the UK, account for more than 80 percent of total foreign direct investment in Germany. www.alborsaanews.com · www.allgaeuer-zeitung.de · radioosnabrueck.de · wochentlich.de · biznis.rs
- [● 8 SOURCES] US investments in Germany fell by nearly 44 percent to 11.75 billion euros. www.alborsaanews.com · www.allgaeuer-zeitung.de · www.zeit.de · radioosnabrueck.de · wochentlich.de · +2 more