Investment Survey 2025 - Germany (European Investment Bank)

Summary

• A high proportion of German firms continue to invest at 89%, slightly higher than the EU average of 86%.p.7
• Net optimism regarding investment expansion declined, with the net balance falling from 8% to 3%.p.7
• Capacity replacement continues to lead investment allocations, accounting for 63% of total spending.p.7
• Skills shortages remain a significant hurdle, cited by 92% of firms as an obstacle and by 73% as a major obstacle.p.7
• External finance contributes 22% of total investment funding for German businesses, aligning with the EU average.p.8

Key insights

1. Service sector firms show the highest net optimism for investment growth at 17%, whereas manufacturing stands at -6%.p.7
2. Regulatory compliance is the primary barrier to international trade, highlighted by 70% of German businesses.p.7
3. Physical climate risks impact 70% of companies, with 67% of large firms establishing adaptation strategies.p.7
4. Dissatisfaction regarding the cost of borrowing dropped significantly from 31% to 18%.p.8
5. The services sector leads in gender diversity, with 38% of firms having over 40% female senior management.p.8