German industrial companies shift investments abroad due to 'cost reasons'

By Mucahithan Avcioglu

ISTANBUL (AA) - Industrial companies in Germany is increasingly moving abroad for cost reasons, according to a survey by the German Chamber of Industry and Commerce (DIHK) on Monday.

In 2025, 40% of German companies stated that they would like to invest outside Germany, down from the last year's rate of 42%.

35% of German companies cited cost reduction as the reason for investing abroad, which marked the highest rate since the 2008 financial crisis.

The Eurozone continues to be the most important region for German companies to invest, with the 64% of companies willing to invest.

On the other hand, North America is gaining ground in investments, with a rate of 48%, rising from the previous year's 45%.

"In addition to market opportunities, low energy costs and local regulations also play an important role. Furthermore, 'local content' regulations and the risk of trade conflicts are making a presence in North America—especially the USA—increasingly attractive to mitigate the consequences of potential customs disputes," it said.

In the Asia-Pacific region excluding China, only 21% of the German companies plan investments, down from 33% last year.

In China, this figure was also down to 31% from the last year's 33%.

"If companies increasingly see their future outside Germany, more is at stake than just individual investments," said Volker Treier, head of foreign trade at the DIHK.

"It's about the prosperity and economic stability of our country. Politicians must act decisively now – with lower energy prices, tax relief, a reduction in bureaucracy, and better conditions for skilled workers," he added.

The survey was conducted with 1,700 internationally active German industrial companies.