Foreign companies last year reduced their investments in investment projects in Germany by 12% compared to the previous year, the consulting firm EY estimated, Berlin 24/7 reported on May 2.
According to EY, only 733 investment projects were implemented in Germany in 2023, the lowest figure since 2013. The drop is the sixth year in a row.
Germany continues to occupy third place in Europe in terms of the number of projects implemented. At the same time, the gap with France, the leading country, continues to increase. France also recorded a five percent loss with 1,194 projects. The United Kingdom is in second place with 985 projects and an increase of one percent.
EY recorded the highest number of foreign investments in Germany in 2017: 1,124. Before the 2019 coronavirus pandemic, 971 investments were registered.
“This is a wake-up call. Germany is lagging behind, other European regions are developing much more dynamically.” EY President Henrik Ahlers was quoted in a statement.
Since 2017, the number of investment projects in Germany has fallen by 35% and in the United Kingdom by 18% during the same period. France, by contrast, saw 20 percent growth.
Ahlers blames the country’s high tax burden, high labor costs, expensive energy and bureaucracy as reasons for the weak performance.
“Bottom line: Investment is falling, sentiment among consumers and businesses is at rock bottom, and the economy is weakening more than in any other industrial country,” – concludes the expert.
In 2023, the number of projects announced in Europe decreased by four percent to 5,694. At the same time, Turkey showed positive dynamics with an increase of 17 percent and Switzerland with an increase of 53 percent. Compared to pre-pandemic levels in 2019, Europe remains eleven percent behind.
Source: Rossa Primavera
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