(86.8%) of cumulative FDI in Germany has been made by other European countries
The vast majority (86.8%) of cumulative FDI in Germany
has been made by other European countries ,
with fellow EU member states accounting for 78. 3 percent of
FDI in Germany. This reflects the central economic impor-
tance of the European Union for Germany. As in the case of
China and Asia, geographical proximity and historical ties
play an important role. EU investors are represented in all
of the sectors listed in the German Federal Bank data, with
a clear focus on the manufacturing sector and the provision
of financial and insurance services.
Over the past decade, the other EU member states have
been able to increase their importance as investors in Ger-
many in both absolute and relative terms. Largely
unaffected by the financial and euro crises of the past dec-
ade, Germany is an attractive location for investment by
its European neighbors.
The apparent decline in 2010 is, in
fact, due to a change in the German Federal Bank’ s method
of compiling FDI statistics.
EU Forecast
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