Germany as a business location is in jeopardy: capital outflows are at record levels

Factory hall without surgery

Capital flows out of Germany are as high as last year. More and more companies prefer to invest overseas.

(Photo: Getty Images)

Düsseldorf, Berlin, Washington Olaf Scholz (SPD) couldn’t stop rambling. “With this investment, we are catching up with world leaders in technology,” the Chancellor said excitedly about the completion of US chip company Intel. This is the largest investment ever made by a foreign company in Germany. The federal government has issued a subsidy of ten billion euros for this.

But while the traffic light coalition is congratulating the Intel deal, the gradual flight of investment from Germany is happening elsewhere. By 2022, $132 billion more in direct investment will flow than will be invested in Germany. It was the largest outflow of any of the 46 states. This emerges from a study by the Institute of the German Economy (IW) related to employers, available to Handelsblatt.

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Ambrose Fernandez

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