Germany Sees 8x Return on Investment in International Students: Report
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Germany is benefiting significantly from its investment in international students, with a new analysis revealing an eightfold return on public spending. The study, conducted by the German Economic Institute (IW) and commissioned by the German Academic Exchange Service (DAAD), highlights the significant economic contributions of international students to the country’s economy.
According to the analysis, Germany recoups its investment in international students within just three years if 40% of them remain in the country post-graduation. If this retention rate continues, each new cohort of international students is projected to contribute a net of €15.5 billion over their lifetime. Even with a retention rate of 30%, the long-term income generated would still exceed public expenditure by €7.4 billion. If half of a student cohort stays in Germany, the surplus would rise to €26 billion.
Germany Excels in Retaining International Talent
Germany boasts one of the highest international student retention rates globally, reinforcing its status as a leading destination for education and skilled labour. The study underscores the crucial role international graduates play in addressing demographic challenges and strengthening the country’s skilled workforce.
Professor Michael Hüther, Director of IW, stated: “Investing in the education of international students strengthens the skilled labour base and supports Germany’s long-term economic growth. These students help overcome demographic challenges, and from a public sector perspective, the investment is highly profitable.”
DAAD President, Professor Joybrato Mukherjee, echoed these views, emphasising the broader contributions of international students. “Although most universities in Germany do not charge tuition fees, international students contribute significantly to the economy over their lifetime. Their presence is an asset not only academically but also economically,” he said.
As Germany continues to attract and retain international talent, the country is set to further capitalise on the economic and social benefits of its thriving student population.
Source: SHIKSHA
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