Signal France and Germany lost wealth in 2025 once exchange rate effects are removed

Summary

MGI reports that France and Germany both saw declines in net new investment and in asset valuations in 2025. Measured in US dollars, their results were flattered by favourable exchange rate movements. Once those currency effects are stripped out, both countries actually lost household wealth over the year. The finding fits the report's broader picture of the eurozone, where productivity growth is down in its largest economies, productive investment remains below prepandemic and global averages, and per capita household wealth in Germany and France has fallen in purchasing power terms. Real estate declines in both countries also weighed on paper wealth.