German companies report high investment needs but low planning
A KfW Research survey reveals 92% of German companies identify investment needs, yet only 61% plan to invest in the coming months. Access to financing is increasingly difficult.
Berlin – German companies are facing significant investment needs but are planning fewer investments, according to a new survey by KfW Research. The study found that 92 percent of companies surveyed identified a need for investment, particularly in digitalization. However, only 61 percent plan to proceed with investment projects in the next twelve months.
Investment activity has declined compared to previous years. Last year, only 57 percent of companies made investments, a lower figure than during the 2009 crisis year (68 percent). The primary reasons cited for this reluctance include the general economic environment and high costs for energy, materials, and wages. This trend is a concern for KfW, Germany's state-owned development bank.
Furthermore, accessing financing has become increasingly challenging for businesses. The 2026 survey indicates that only 24 percent of companies found obtaining a loan easy, down eight percentage points from 2024. Approximately 26 percent described credit access as difficult, with smaller companies facing the most significant hurdles.
The survey also points to a broader economic slowdown. Nearly half of the companies (46 percent) reported a decline in demand over the past twelve months, while only 20 percent saw an increase. Looking ahead, 40 percent expect further demand reductions, intensifying economic uncertainty.