Foreign Investment in Germany Jumps 50% in 2025, Led by British Inflows

Foreign direct investment (FDI) in Germany surged by 50% in 2025, reaching approximately €86 billion, according to calculations by the German Economic Institute (IW) based on Bundesbank data. The sharp rise was driven by a massive jump in inflows from Britain, which more than compensated for a steep decline in investment from the United States.

British companies invested €26 billion in Germany last year, an increase of about 284% from 2024. This made Britain the single largest source of foreign investment, accounting for nearly 31% of total inflows and overtaking the United States, which had held the top spot the previous year.

In contrast, US investment in Germany fell by almost 44% year-on-year to €11.8 billion. The US share of total foreign investment dropped to around 14%, down from more than 36% in 2024.

Investment from other European Union countries totaled about €43 billion, despite a slight 2.7% decline from the prior year. This still represented more than half of all foreign investment inflows into Germany.

Overall, 2025 investment levels were nearly 11% above the median for the 2015–2024 period. The IW noted that FDI flows can fluctuate significantly from year to year, making the figures subject to volatility.