A recent study reveals a shift in sentiment among German business leaders regarding the nation’s economic transformation, though critical assessments remain prevalent. Conducted by management consultancy Kearney and the industry-aligned Institute for German Economy (IW), the research indicates a noticeable improvement in perceptions compared to last year. While the overall score rose from 4.4 to 3.5 on a five-point scale, the study authors caution against interpreting this as a definitive vindication of Germany’s structural changes.
The disparity across sectors is particularly telling. The pharmaceutical, banking, insurance and technology industries are exhibiting performance indicators reflective of a positive trajectory, suggesting that targeted adaptation strategies are bearing fruit. Conversely, the energy and automotive sectors lag significantly behind, highlighting systemic challenges that demand urgent attention. The automotive industry’s struggles, in particular, underscore the complexities of transitioning away from traditional combustion engine production amidst global electrification trends.
Despite the uptick in optimism, the study emphasizes that a genuine economic turnaround remains elusive. The findings act as a stark reminder for German businesses to accelerate their own transformation efforts. Marc Lakner, Germany CEO of Kearney, stressed the criticality of speed, warning that a failure to maintain momentum risks Germany losing its competitive edge on the global stage. The study implicitly challenges policymakers to address the underlying structural issues holding back vital sectors and to create a more supportive environment for innovation and investment, lest the perceived improvement in sentiment prove superficial.
