Number of FDI in Germany Likely Rose in 2022
Despite rising energy costs and other global disruptions resulting from Russia’s war against Ukraine, more international companies expanded to Germany in 2022 than the previous year. That’s according to Robert Hermann, the CEO of Germany Trade & Invest, Germany international business promotion agency.
1806 international businesses set up shop in Germany in 2021, and final figures for 2022 won’t be available until the spring of 2023. But “the upward trend is continuing,” Hermann told Reuters news agency. “There’s no hesitation concerning Germany as a business location.”
Along with battery production and battery recycling, the semiconductor industry was one of the most active sectors, led by chipmaker Intel’s decision in the spring of 2022 to invest EUR 17 billion in a massive factory in Magdeburg.
The top country of origin for such foreign direct investments (FDI) was the United States, with the strength of dollar against the euro playing a “gigantic role,” explained Hermann.
Britain was in second place, probably as a result of companies seeking a foothold in the EU after Brexit. By contrast, business investments from China were down because of that country’s strict Covid restrictions. For that reason, expansions from China to Germany could pick up in 2023, Hermann added.
Robert Hermann, CEO of Germany Trade & Invest © GTAI/Illing & VossbeckFotografie