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%).