International students: Germany’s economic future in numbers!

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The IW study on the economic influence of international students in Germany, funded by the DAAD, shows considerable advantages for public budgets.

Die IW-Studie zum wirtschaftlichen Einfluss internationaler Studierender in Deutschland, gefördert vom DAAD, zeigt beträchtliche Vorteile für öffentliche Haushalte.
The IW study on the economic influence of international students in Germany, funded by the DAAD, shows considerable advantages for public budgets.

International students: Germany’s economic future in numbers!

On September 26, 2025, a special moment took place at the University of Kassel. The long-time manager of Café “Laedchen”, Ms. Schroeder, was officially farewelled. Their small but fine place was not only a popular meeting place for students, but also an institution that contributed to the lively atmosphere of the campus. “My eyes were everywhere,” she said as she looked back on the many memories she has made over the past few years.

Ms. Schroeder played a central role in the integration and support of the students. Her passion and dedication were noticed by everyone who interacted with her. On the occasion of her farewell, many praised her tireless commitment and the open ear she always had for the concerns of young people. “She wasn’t just a saleswoman, she was a part of the community,” said one of the former employees.

Internationalization of universities

Parallel to the celebrations at the University of Kassel, the German Economic Institute (IW) is publishing an important study on the economic effects of immigration via universities. This study was commissioned by the German Academic Exchange Service (DAAD) and highlights the central role of international students in Germany's economic and social development. According to the study, Germany is the most important destination country for international scientists after the USA.

The study clearly shows that international students not only enrich the university and scientific landscape, but also make a significant economic contribution. Among other things, they generate tax revenue and social security contributions from which the public budget benefits. While around 80,000 international students started their studies with the intention of graduating in 2022 alone, their long-term contribution is around eight times more than what the state invests in their education.

Long-term prospects for international students

Federal Research Minister Cem Özdemir emphasizes the need to create attractive long-term prospects for international students. To support this, the Federal Ministry of Education and Research (BMBF) launched the “International Specialists” campus initiative. This will be funded with around 120 million euros until 2028 and aims to promote the academic success and labor market integration of international students.

The IW study shows that if 30% of students stay, income exceeds expenditure by 7.4 billion euros. With a retention rate of 50%, a surplus of 26 billion euros is achieved. Each year of international students makes a significant contribution to stabilizing the national economy. Around 405,000 international students are currently studying in Germany, and 65% of them plan to stay in the country.

In summary, it can be said that women like Ms. Schroeder and the economic findings through studies like those from the IW confirm how important the support and integration of international students is for the future of Germany. This not only enriches the academic landscape, but also paves the way for a diversified and innovative society.

Further information can be found on the website University of Kassel find, to study the BMF and about international study opportunities DAAD.