German firms to cut foreign investment

15 April 2009

BERLIN: Companies based in Germany are radically scaling back their plans for international expansion in the short-to-medium term, reports a study by the German Chamber of Industry and Commerce.

A survey of 7,000 businesses by the industry body found that 40% of firms are set to reduce their overseas investment, with just 17% stating an intention to increase their outlay outside of Germany.

The negative net balance of 23% marked the first time that more corporations headquartered in the country plan to rein in their international aspirations since the first poll in 1995.

The hardest hit nations are set to include Hungary, Bulgaria and the Baltic states, with the number of companies interested in enhancing their activities in these markets falling by 7%.

Figures for Western Europe were largely static, but Russia, China and most other Asian nations are also expected to see a reduction in investment activity among German firms.

Data sourced from Deutsche Welle; additional content by WARC staff