Germany Trade & Invest’s annual study on foreign direct investment shows that companies are continuing to expand at a rapid pace in and to Europe’s largest economy despite the many challenges.

1,724 companies from abroad announced relocation and expansion projects last year – according to the FDI Report 2024 published by the German foreign trade promotion agency Germany Trade & Invest (GTAI). This was two percent less than in 2023, but the figure is comparable to that of the past five years. The volume of international business projects amounted to 23.2 billion euros. This is the third-highest figure ever recorded for Germany and is significantly higher than the level before the coronavirus pandemic.

“Given the massive economic challenges that Germany, Europe and the world have faced over the past year, the number and volume of FDI projects is remarkably good,” says GTAI COO Robert Hermann. “Germany has proven to be very stable and resilient in the face of global crises. Companies from all over the world see Germany as an excellent location and are therefore expanding here.”

The investment volume reflects the high number of major projects that have been initiated by some of the world’s leading multinational companies.

“The largest companies are naturally attracted by the size and importance of the German market,” says Hermann. “And that also makes the country even more attractive for SMEs.”

35% of companies expanding to and in Germany come from the European Union. The leading single country of origin was the USA, followed by Switzerland, China, the United Kingdom and the Netherlands.

17% of companies’ investments went into the digital sector, followed by the energy and resources (16%), electronics and automation (15%) and mobility and logistics (13%) sectors. Another trend is the revival of investment in manufacturing and research and development (20%).

“These figures put some of the recent negative headlines about German growth into perspective and place them in the appropriate context,” says Hermann. “Germany remains the economic heart and powerhouse of Europe. It is therefore still a top location for international companies looking to expand their business.”

The FDI Report 2024 is based on data from the 16 federal states of the Federal Republic of Germany. It includes new establishments, expansions and relocations, but excludes mergers and acquisitions. Read the full FDI Report 2024 (English).

Germany Trade & Invest (GTAI) is the economic development agency of the Federal Republic of Germany. The company informs German companies about foreign markets, promotes Germany as a business and technology location and assists foreign companies in setting up operations in Germany.