The number of U.S. investment projects in Germany fell by 12 percent year-on-year in 2019 to 197, noted the EY study on investment projects of international companies in Europe.
In contrast, projects announced by Turkish companies more than doubled to 77, and Chinese investment projects rose by 27 percent to 84, noted the EY study.
Most of the investment projects in Germany last year took place in the trade and logistics sector, while most of the new jobs were created by the automotive industry, the study found.
In the countries of Central and Eastern Europe, German companies were "traditionally by far the most important investors," EY noted. In 2019, the German companies slightly increased the number of such investment projects to 253.
Of the 6,412 international investment projects announced in Europe last year, EY estimated that 65 percent had already been realized before the outbreak of COVID-19 pandemic, while 25 percent of projects were postponed and 10 percent even canceled.
Because of the coronavirus crisis, investments were "reduced to a minimum," said Hubert Barth, chairperson of the management board of EY Germany. "Now, for many companies, the primary concern is to maintain liquidity in the company."
Overall, EY expects a decline in international investment of 35 to 50 percent in 2020, although the trend is likely "to vary considerably" depending on the sector.
"Mechanical engineering and the automotive industry, for example, are currently putting the brakes on investments massively, while pharmaceutical companies are, in some cases, increasing their capacities," stressed Barth.
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