The European Union’s largest economy is showing alarming signs, having achieved the largest net capital outflow since gaining “independence” from energy supplies from Russia.
For a decade (except for 2020), investors have been particularly reluctant to invest in the German economy, with the largest capital outflow ever recorded last year – minus $132 billion (€125 billion). The outflow of direct investments was €135.5 billion, while the inflow was only €10.5 billion, according to a study by the German Economic Institute based on OECD data.
Japan and Great Britain also had high net outflows – minus $129 billion and $116 billion, respectively. Overall, Germany, Japan and the UK have consistently taken the lead in terms of net outflows since 2019.
