In 2025 German capital inflows finally surpassed outflows for the first time since 2003, according to a study by the institute for German economics (IW) that was reported in the Sunday edition of “Handelsblatt”. The net inflow exceeded the outflow by €10 billion. In 2019 the balance had been a deficit of €85 billion. IW researcher Jürgen Matthes said the new balance looks “pretty decent” and that Germany continues to be an attractive location for foreign companies.
The previous year saw €96 billion in direct foreign investment flowing into Germany, well above the average since the turn of the millennium. Matthes explained that investors value the country’s qualities even while there are still challenges with bureaucracy, legal certainty and predictability, adding that in an increasingly uncertain world “plain, dependable certainty is suddenly attractive”.
Corporate managers have noted a rising interest in Germany. Commerzbank’s corporate‑banking chief Michael Kotzbauer called the interest of U.S. investors “enormous” and added it has grown even further over the last year. He cited the erratic policy environment under former U.S. President Donald Trump as a factor pushing American investors to seek diversification opportunities elsewhere.
Claudio de Sanctis, the private‑banking head at Deutsche Bank, said that successfully implementing infrastructure investments and accompanying reforms could give foreign investment a much-needed boost.