Economy in Germany: CEOs regain confidence

Port of Hamburg: Good prospects for more profit

For the first time in years, CEOs in Germany are more optimistic about the prospects for their company. In a survey conducted by auditing and consulting firm KPMG, 86 percent of managers expect growth in the next three years. This is 14 percentage points more than in the previous year. Also in 2023 and 2024, the share of optimists was significantly lower at 80 and 77 percent.

“The economic outlook for Germany has recently brightened and cautious optimism is also returning in the German boardrooms,” the analysis says. From 11 August to 21 September, 1400 heads of large companies from twelve countries worldwide were surveyed, including 125 from Germany.

In the next three years, almost 70 percent of the company bosses surveyed in Germany expect 2.5% profit growth for their company or more. In 2025, it was only 42 percent. Corporate managers also assess the prospects for their own industry and Germany as a location better than in the previous year: For their own industry, the value increases from 71 to 78 percent, for the location from 75 to 78 percent.

More and more economists are entrusting the German economy with greater growth this year. Most recently, the federal government had more than doubled its forecast for 2026 to 1.3 percent.

The heads of the company, however, remain cloudy: Just under two thirds (62 percent) expect growth, after 64 percent in the previous year, according to the survey, for which companies with an annual turnover of more than 500 million dollars (more than 445 million euros) were considered. “German CEOs assess the global environment a little more cautiously than their international colleagues,” writes KPMG.

The more optimistic expectations are not based on hopes of better conditions or tailwinds from global trade, says Mattias Schmelzer, Germany head of KPMG. Instead, companies invested in new technologies such as artificial intelligence, strengthened their competitiveness and driven their transformation.

According to the survey, 77 percent see AI as a top investment priority. Almost all (94 percent) expect a return on their AI investments within three years or have already achieved them. 90% of the company’s CEOs are also considering acquisitions in the next three years.

Despite the increased confidence, companies struggled with a difficult environment. German CEOs cite external factors as the biggest risks for growth, such as regulation with 30 percent, geopolitical instability with 29 percent and a weak global economy with 27 percent.