According to GlobalData’s FDI Projects Database, Germany received 1,567 greenfield FDI projects in 2020, while France received 624 projects.
The number of projects entering Germany increased by 16 percent in 2019 compared to the previous year. During the same time period, the number of greenfield FDI projects in France increased even more dramatically (18 percent ).
FDI from Germany into France
In France, 85 projects were launched by German firms in 2020. In comparison to the previous year, this was a 70% rise.
In France, companies based in Germany predominantly engaged in the logistics, renewable and alternative energy, and software and IT services industries. These three industries together accounted for 36% of all German outbound FDI projects intended for France in 2020.
Medical equipment (30 percent of total German outbound FDI in the industry), construction materials (29 percent), and healthcare (25 percent) got a higher proportion of German outbound FDI in France.
Deutsche Post, Dieter Schwarz Stiftung, and Siemens were among the top German investors in France. In the 2019–20 fiscal year, these firms contributed for 13% of overall project flows.
France was the second-largest receiving country in terms of total German outbound FDI projects in 2020. In 2019, it was the seventh-largest beneficiary.
Companies from Germany typically set up shop in the Ile-de-France region, which includes the capital city of Paris. In reality, in 2020, German corporations planned to invest 37 percent of their projects in France. The next most popular subnational destinations were Grand Est and Nouvelle-Aquitaine.
Outbound FDI from France to Germany
In the year 2020, 70 initiatives will be launched in Germany by enterprises located in France. In comparison to the previous year, the number of initiatives dropped by 4.1 percent.
The main categories in which French companies invested in Germany were software and IT services, business and professional services, and industrial machinery, equipment, and tools. In 2020, these three sectors together represented 41% of all French outbound FDI projects destined for Germany.
Ubisoft Entertainment, Capgemini, and Decathlon were among the top French investments in Germany. In 2019–20, these enterprises accounted for 7% of the total number of French-headquartered initiatives launched in Germany. In 2020, Germany will be the second-largest beneficiary of French outbound FDI. In 2019, it was the third-largest beneficiary.
Companies from France predominantly developed operations in Baden-Wurttemberg, which includes Stuttgart. In 2020, Baden-Wurttemberg will be home to 34% of all French outbound projects planned for Germany. The most popular subnational destinations were Hessen and Bavaria.