Germany’s ability to attract business investment suffered an “alarming” decline last year, when more than €135bn of foreign direct investment flowed out of the country and only €10.5bn came in, according to a leading economic institute.
The Cologne-based German Economic Institute (GEI) said the gap between outbound investments by German companies and business investment into the country in 2022 was the largest on record, based on data from the OECD.
“The investment conditions in Germany had recently deteriorated again due to high energy prices and the increasing shortage of skilled workers,” said Christian Rusche, an economist at the GEI.
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