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Foreign capital pours into Germany

Shafaqna English– According to fresh calculations released by the German Economic Institute (IW) and reviewed by Reuters on Monday, Germany experienced a remarkable 50% year‑on‑year increase in foreign direct investment (FDI) throughout 2025.

This double‑digit surge, however, masks a complex underlying dynamic: while British corporations significantly expanded their capital commitments to the German market, American firms concurrently pulled back with a steep contraction in their investments, creating a substitution effect that ultimately tilted the overall balance in Germany’s favour.

Source: Reuters

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