European Stocks at the Top
According to the United Nations Conference on Trade and Development (UNCTAD), Germany ranks among the world's leading countries for foreign direct investment (FDI) with EUR 731 billion in inward FDI stocks in 2016.
According to official Bundesbank (“German Central Bank”) statistics for 2015, some 59 percent of all FDI stocks in Germany originate from within the European Union, with a further eight per cent stemming from the remaining European non-EU countries. Investments from outside the EU continue to grow. North America accounts for 19 percent of FDI stock, while Asia holds a 12 percent share. Especially Asian countries increased their FDI stocks in Germany in recent years. Germany is the world’s largest recipient of new Chinese FDI projects.
Bar Graph: UNCTAD Ranking of Inward FDI Stocks | © UNCTAD 2017
Ongoing Interest in Greenfield Investments
Between 2010 and 2016, fDi Markets recorded more than 6,727 investment projects in Germany by some 5,500 foreign companies. In 2016 more than 1,100 projects were noted down, one of the best results achieved to date.
Germany is placed fourth worldwide in terms of FDI projects attracted. FDI results are based on greenfield project announcements (including expansions and joint ventures) collected in the Financial Times Group's fDi Markets database.
The most important countries as sources for new investment projects are the USA (20 percent of all investment projects), Switzerland (11 percent), and the UK (nine percent) respectivley. In 2009, China emerged as a major source of investments, rising to becomethe most important Asian source country for greenfield FDI projects in Germany. The high level of Chinese investment has subsequently been maintained, making Germany the world's number one location for Chinese greenfield investments.
The ICT & software industry, and business & financial services are leading sectors in attracting new projects. The industrial machinery & equipment, textiles, consumer goods, and chemical industries are likewise attractive foreign investment sectors in Germany.
Most new projects open sales and marketing & support offices. One in seven investment projects is either R&D or manufacturing-site located.
Pie Chart: FDI Projects in Germany by Sector | © fDi Markets 2016
Bar Graph: FDI project share in Germany by Business Activity (2011-2016) | © fDi Markets 2017