Despite a persistent economic slowdown gripping Germany, the advisory sectors of tax consulting, legal services and auditing continue to demonstrate remarkable resilience and even optimism, creating a stark contrast with the broader economic narrative. A special analysis of the Ifo business climate index, published by Handelsblatt, reveals that half of all firms in these sectors expressed satisfaction with their performance throughout 2025, while a quarter anticipates further improvement in the coming year. This represents a significantly more positive assessment compared to the previous year and diverges sharply from the prevailing economic sentiment.
“The fields of legal, tax and auditing advice remain in very good shape” stated Ifo researcher Klaus Wohlrabe in an interview with Handelsblatt. He characterized the sector as “relatively robust” emphasizing that pessimistic viewpoints never reached a critical mass during the year. While the industrial sector and the overall economy stagnated, these advisory firms have consistently maintained a strong position.
The adoption of artificial intelligence is further fueling this dynamism, creating both opportunity and anxiety within the sector. Nearly 70% of firms are already integrating AI into their daily operations, with an additional 10% planning to do so soon, according to the Ifo survey. However, a concerning 25% of AI users anticipate potential job displacement as a direct consequence of its implementation – an average estimated loss of 12% of positions. This looming prospect arrives at a time when the sector is already grappling with a severe shortage of skilled workers; over a third of firms are actively planning recruitment drives to address this deficit.
The divergence in performance between the advisory sectors and the wider German economy raises critical questions about the structural inequalities within the nation’s economic landscape. While the reliance on specialized, higher-value services contributes to the resilience of these firms, the potential for AI-driven job losses – even as they recruit – indicates a complex societal challenge requiring proactive policy interventions to mitigate potential negative consequences and ensure a just transition for affected workers. The continued strength of these sectors also begs for closer scrutiny of income distribution and the potential for increased disparities as the broader economy struggles to recover.
