• Every euro invested increases German exports by 2.50 euros – 380,000 jobs created and secured in Germany
• Development cooperation increases market opportunities for German companies and leads to greater resilience of German foreign trade

Development cooperation expenditure secures greater prosperity and more jobs in Germany than previously known. This is the conclusion of a recent study by the University of Göttingen. The analysis examines the relationship between payments made in the context of German development cooperation and German exports of goods and, for the first time, services to partner countries between 2005 and 2024.

The calculations show that for every euro that Germany invests directly in a partner country through development cooperation, German exports of goods increase by 2.50 euros. The researchers attribute this effect partly to income effects in the recipient countries, as these increase local demand and imports. This also benefits the German economy. The resulting additional exports contribute to creating and securing around 380,000 jobs in manufacturing companies and in the service sector in Germany. German development cooperation achieves its strongest export returns in the sectors of mechanical engineering, transport, information technology, and the chemical and electrical industries.

Brigitte Réthier, Member of the KfW Group Executive Board:

"The results show that German development cooperation has tangible export effects. This also benefits our domestic economy and, with it, many jobs in Germany. Contributing to sustainable development in partner countries is linked to economic opportunities and interests."

The results are clear: German development cooperation strengthens Germany's trade relations and makes German foreign trade more resilient to geoeconomic risks. Development cooperation strengthens international links even in times of crisis. With emerging economies in particular, a close partnership and a local presence are extremely important for Germany as an economic centre. Investments in sustainable infrastructure and climate action improve the market opportunities of German companies when it comes to the expansion of energy and transport systems in the partner countries."

More information about the study can be found here.

The full study can be found at this link.