German firms curb investments despite strong demand, KfW survey finds

A KfW Bank survey of 1,567 German companies shows a sharp gap between the need for investment and actual spending. While 92 % say they need to invest, only 61 % intend to launch projects in the next twelve months. The largest demand, cited by 53 % of respondents, is for information‑technology upgrades, followed by decarbonisation and innovation.

Investment activity has fallen to its lowest level since the 2009 crisis, with just 57 % reporting any spending in the past year. Companies also report tighter credit conditions: only 24 % consider obtaining a loan easy, compared with 34 % a year earlier, while 26 % find it difficult. Almost half (46 %) have seen a decline in demand over the previous twelve months.

KfW chief Stefan Wintels warned that “Germany faces a major investment task – both public and private – and too many projects remain stalled.” He called for less bureaucracy, greater planning certainty, skilled immigration and reliable financing to unlock the backlog.