At the end of 2021, Germany’s primary outward foreign direct investment (FDI) stocks were up 8% on the year at €1,506 billion. Stocks of FDI in Germany show a different picture. A decline was recorded for the first time in a long period, with stocks down 2% to €852 billion. At €169 billion, German FDI flows abroad proved robust for 2022, despite being down slightly on the exceptionally high level of the previous year. By contrast, FDI flows from abroad to Germany almost halved to €44 billion.

07.-09.07.2021 | Virtual Event

Germany’s current account recorded a surplus of €5.9 billion in October 2022, almost half of the previous month’s result.

Bundesbank President Jens Weidmann warned that a full-blown trade war between the US and the EU could cost both sides dearly. "The adverse effects might be considerable larger than in case of the trade spat with China“, he said in a speech in New York.

The People’s Republic of China currently has severe economic problems to contend with. On top of that, relations between advanced economies in the West and China have worsened noticeably of late. These developments also present considerable risks for Germany. “If these risks materialise, Germany’s economy could take a huge hit,” the Bundesbank writes in an article in its January Monthly Report. The article explores Germany’s dependence on China, and is the first to also focus on potential risks to the financial system.