Foreign Investment Appeal in Germany Falls to Lowest Level Since 2017
The study, titled Business Destination Germany 2026, surveyed 400 chief financial officers from major German subsidiaries of international firms based in eight leading investor countries.
According to the findings, KPMG’s location index—which measures Germany’s performance against other European Union countries across more than 20 indicators—fell to 0.2 points in 2026. This compares with 1.2 in 2023 and 3.1 in 2017, on a scale ranging from +10 to -10. The latest result places Germany only marginally above the EU average.
Despite the downward trend, the survey noted that Germany still benefits from strong fundamentals, including a large domestic market, political stability, public security, and a strong innovation ecosystem. It found that 60% of respondents use Germany as their European headquarters, while 63% also manage operations outside Europe from within the country.
However, participants also pointed to persistent structural issues that they say are weakening Germany’s attractiveness as an investment destination.
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