Germany's FDI balance: what lies behind the figures?

The article examines whether Germany's competitiveness is declining or just deviating from the pattern of a modest but steady inflow of direct investment. Whereas in the last century, the country relied on foreign direct investment (FDI), over the past twenty years it has not been one of the major recipients of such capital flows. Despite this setback and other problems, however, the author concludes that the country's status as a "natural" creditor as regards FDI does not mean that it has lost its attractiveness as an investment location. With its highly developed infrastructure and stable business environment, the country continues to be a good place for foreign companies to operate.