Outward FDI from Germany and its policy context, 2012

In 2011, German outward foreign direct investment (OFDI) flows temporarily declined, regaining their growth momentum again in the first half of 2012. The German corporate sector further expanded its foreign operations to gain and expand market access and improve the efficiency of its international production networks. The European sovereign debt crisis had no major negative effects on German OFDI until mid-2012. Recently, however, several indicators have suggested that the foreign investment plans of German multinational enterprises (MNEs) are under revision due to the continuing European sovereign debt crisis and the economic downturn in many European economies. The German Government has continued to support the internationalization process of the German corporate sector