frankfurt-germany-fdi
Business hubs such as Frankfurt have helped to maintain a steady flow of FDI into Germany throughout the Covid-19 pandemic. (Photo by Daniel Roland/AFP via Getty Images)

Germany Trade & Invest (GTAI) recently published its foreign direct investment (FDI) report,which reveals that more than 2,000 foreign business investment projects were recorded in Germany in 2020. Of these projects, 1,684 were greenfield investments, expansions or relocations and 372 were mergers and acquisitions.

Germany’s 2020 FDI figures were down 9% compared with 2019 due to the Covid-19 crisis, but still exceeded expert predictions. As GTAI chief executive officer Robert Hermann explained: “The decline is anything but surprising considering the global coronavirus crisis, but the UN Conference on Trade and Development predicted that foreign business investments would decline by 15%, so 9% is ultimately positive news.”

The US was the top source country for investment in Germany with US-based companies responsible for 254 projects in 2020, followed by Switzerland (219) and China (170). Notable projects include China-based high-tech company SVolt’s planned €2bn investment in two battery cell factories in Saarland.

The leading sector for investment was ICT and software, representing 19% of all greenfield FDI projects and expansions. It was followed by business and financial services (17%), consumer goods (10%) and industrial machinery and equipment (9%).

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Sales, marketing and support operations accounted for almost 40% of all greenfield FDI projects and expansions in 2020, followed by manufacturing and R&D with 19% and business services with 18%.