More new settlements by foreign companies despite high energy prices

BERLIN, Dec 28 (Reuters) – Despite soaring energy prices and a growing shortage of skilled workers, the feared drop in foreign investment in Germany has not materialized this year. “In terms of the number of new settlements, things are looking even a little better than in 2021,” the director general of the federal business development agency Germany Trade & Invest (GTAI), Robert Hermann, said on Wednesday. to the Reuters news agency. . In 2021, a total of 1,806 foreign companies moved to Germany or expanded their locations, an increase of 7%. “He continues to grow upwards,” Hermann said, looking back at the year ending. The final figures on this subject would be available in a few months.

There is also a positive trend and no decline in inquiries – where investments are initiated. “There is no hesitation about Germany as a location for business,” Hermann said amid debates about the threat of deindustrialization due to drastically rising energy prices at home. following the Russian war against Ukraine. This is also reflected in the fact that foreign companies are increasingly investing in future technologies – for example in the areas of semiconductors, battery production and recycling. “There are a lot of companies here that want to invest a lot of money.” The American chipmaker Intel, for example, announced in the spring that it wanted to build a factory in Magdeburg for 17 billion euros.

CHINA IS NO LONGER IN THE TOP TEN – BACK IN 2023?

The United States remained the leading investor over the past year, by a wide margin. “The dollar exchange rate plays a huge role,” Hermann said. Due to its strong appreciation against the euro, investments here are cheaper for US companies. Britain ranks second among investors, which GTAI sees as a consequence of Brexit: “Anyone active in Germany secures access to the entire EU internal market,” Hermann said. . Neighboring France follows in third place.

China, on the other hand, is no longer in the top ten. “It has to do with the People’s Republic’s zero Covid policy, because of which businesses there can’t exit or enter,” Hartmann said. In the coming year, however, Chinese investors could make a comeback, as Beijing has now eased its austerity policy. Moreover, Chinese investors would find it harder to buy German companies, which is why they would change their strategy and set up shop here themselves. “That’s why more Chinese companies could come back to Germany in 2023.”

More new settlements by foreign companies despite high energy prices

Source: Reuters

Photo symbol: image by günter on Pixabay

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