While both household and corporate savings rose, overall investment remained subdued – Germany went from being a capital importer in the 1990s to a capital exporter, and so from posting a current account deficit to a surplus. The low level of overall investment is attributable to numerous factors. Residential investment fell markedly in the aftermath of the real estate bubble of the 1990s.
Business investment has been muted on average as well. The overall investment ratio was 16.7% in 2013, compared with 22.3% in the year 2000. Following the sharp downturn induced by the financial crisis, corporate investment rebounded at first, but then fell a second time, as uncertainty due to the crisis in the euro area started to weigh on growth prospects.