Germany earns 8 times investment in international students

By Minh Nga March 24, 2025 | 07:59 pm PT

Students wear masks during a class in Germany under the impact of the Covid-19 pandemic in 2021. Photo by Reuters

International students in Germany contribute eight times more to the public budget than the government spends on them each year, according to a study by the German Economic Institute (IW).

The study, commissioned by the German Academic Exchange Service (DAAD), found that if 40% of international students remain in Germany to work after graduation, their taxes and contributions will, within three years, cover the educational costs Germany invested in them.

With a stable retention rate, this group is expected to contribute €15.5 billion (US$16.8 billion) annually to the economy, according to the DAAD's recent press release.

"Even with a retention rate of only 30%, income would exceed expenditure by €7.4 billion in the long term. If 50% of a cohort were to remain in Germany long-term, the surplus would reach €26 billion," the study noted.

Dr. Joybrato Mukherjee, President of DAAD, said that the study highlights the value of international students.

"Although most universities do not charge tuition fees, international students make significantly higher contributions to our society over the course of their working lives than Germany invests in their studies and beyond. International students are an asset to our country in many ways, academically of course, but also economically," he said.

Professor Michael Hüther, Director of IW, added that investing in international students helps Germany stabilize its skilled labor base and drive economic growth.

"They help to overcome the challenges of demographic change. In addition, the investments are highly profitable from a public sector perspective and strengthen public budgets in the long term," he stated.

Germany has seen steady growth in foreign enrollment in recent years.

The number of international students studying in Germany reached a record high with nearly 380,000 students enrolled in the winter semester of 2023-2024, marking a 3% increase compared to the same period last year.

International students now comprise nearly 13% of Germany's total student body, according to the DAAD.

Indian students form the largest group, with around 49,000 enrollees, followed by China (38,700), Turkey (18,100), Austria (15,400), and Iran (15,200). Syria, previously among the top five, now ranks sixth with 13,400 students.

The Organization for Economic Co-operation and Development (OECD), in a 2022 report, said that Germany, along with Canada, has one of the highest retention rates of international students among major study destinations.

More than 60% of international students who obtained a study visa in 2015 were still present in Canada and Germany in 2020, while around half remained in Australia, Estonia and New Zealand. In contrast, less than 15% remained in Denmark, Slovenia, Italy and Norway, it sad.