International students significantly contribute to Germany’s economic growth and its fiscal system, according to a recent study conducted by the German Economic Institute (IW). The study emphasized that the 79,000 international students who commenced their studies in Germany in 2022 alone are expected to contribute approximately €15.5 billion ($16.8 billion) more in taxes and social security contributions throughout their lives than they will receive in benefits.

Joybrato Mukherjee, President of the German Academic Exchange Service (DAAD), emphasized in a statement that international students are a valuable asset to Germany, benefiting the country not only academically but also economically.

Germany also boasts a high retention rate for international students. According to a 2022 study by the OECD, around 45% of individuals who arrived in Germany on a student visa in 2010 were still in the country a decade later. This has already covered the cost of their education, as the IW calculated that the cost of educating students is offset by their taxes and social security contributions if 40% of them stay for at least three years after completing their studies.

While the cost of living in Germany, especially in regions like Bavaria, can be high, several students find part-time work to support themselves. This was a surprising finding of the study, as many international students contribute to the economy during their studies. University services often help students find these jobs.

However, the transition after graduation can be challenging, as students must rely on the job market. Germany’s automotive industry, which has been facing difficulties, has been laying off workers, making it harder for graduates to find employment.

Despite these challenges, many students like Younis Ebaid, an Egyptian software developer, find Germany attractive due to its affordable education and strong industry ties. Ebaid, who faced a gap between his graduation and finding full-time employment, eventually secured a job in his field, working for a global Indian company that produces software for German carmakers.

Germany has been trying to create a legal framework to encourage international students to stay in the country after their studies, recognizing the benefits of their contributions to the workforce and the economy.

While Germany seems to be doing well in attracting and integrating international students, there is still room for improvement, such as addressing language barriers and improving bureaucratic processes. Nevertheless, the inflow of international students is a significant advantage for Germany, strengthening its relations with other countries and fostering an international academic community.

Source: https://www.dw.com/en/international-students-bring-billions-to-germany/a-72018202?maca=en-rss-en-all-1573-rdf