German companies are massively withdrawing investments from the USA!

German companies are massively withdrawing investments from the USA!

Investments by German companies in the USA have declined sharply in recent years, especially after Donald Trump took office. According to a recent report by the Institute of German Economy (IW) Investments in February and March 2023 only amounted to 265 million euros. This amount is in significant contrast to the average investments, which were around 4.6 billion euros between 2010 and 2024 - almost 18 times as high.

Economic experts interpret this decline as a possible indication that US economic policy is currently deterring investors. What is particularly noteworthy is that the first year in office of a US president is often characterized by economic policy uncertainty. This is a view that IW foreign trade expert Samina Sultan also shares. However, she warns that the figures should be interpreted with caution, as monthly values ​​fluctuate greatly and there are often subsequent corrections.

Declining trends and necessary stability

The current trend clearly shows that German companies are currently holding back their investments in the USA. Sultan makes it clear that larger investments primarily require reliability and predictability, which is currently not the case in the USA. The decline in investments in the first quarter of 2024 was no less remarkable, as the total amounted to almost 8.7 billion euros, which also shows significant changes compared to previous years.

The IW figures also highlight that the lowest level of German direct investment in the US was recorded in 1993, during Bill Clinton's first year in office, further highlighting the long-term effect of political changes on economic relations between Germany and the US.

Summary

• Investitionen deutscher Firmen in den USA nach Trumps Amtsantritt stark gesunken.
• Februar und März 2023: nur 265 Millionen Euro investiert.
• Durchschnittliche Investitionen der Jahre 2010-2024 lagen bei 4,6 Milliarden Euro.
• Wirtschaftspolitische Unsicherheit als möglicher Grund für Rückgang.
• Unternehmen benötigen Verlässlichkeit für große Investitionen.

The latest figures leave many questions unanswered. It remains to be seen whether and when investments by German companies in the USA will recover, especially considering the current economic uncertainties. Samina Sultan's statements are particularly relevant here and should continue to be monitored in the coming months. For a detailed overview of economic developments, we recommend taking a look at the statements by Trading Key.