Germany Recovers 8x Return On Investment In Foreign Students: ICEF Monitor

Study in Germany: A new analysis has shown that Germany significantly exceeds the return on public investment in international students. It has the highest rate of retention of international students.

German Economic Institute (IW) has come up with a new analysis which is commissioned by the German Academic Exchange Service (DAAD). The analysis says that every year foreign students are contributing 8 times more revenue of public investment on them.

"Every year of international students contributes around eight times more to the revenue of public budgets in the long-term than the state invests in them," says the analysis, as reported by ICEF Monitor.

Germany Has Highest Rate Of Retention Of Foreign Students

The country has the highest rate of retention of international students. The analysis said that Germany usually recovers its investment in supporting international students in their studies very soon. If 40% of the international student cohort remains in the country after completing their studies, their contribution through taxes and others in the country's economy covers the costs of their education within a duration of three years. It also says that if the retention rate remains stable then each new cohort of international students contributes a net of €15.5 billion over their lifetime.

"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 in the long term, the surplus would even amount to €26 billion," says IW.

IW Director Prof Dr Michael Hüther said, "Investing in the education of international students strengthens the skilled labour base and thus economic growth in Germany in the long term. 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."

DAAD President Dr Joybrato Mukherjee added, "The new IW study impressively demonstrates the economic importance of international students for Germany. 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."

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