Economy in Germany: company bosses are gaining more confidence again

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

“The economic prospects for Germany have recently brightened and cautious optimism is also returning to German boardrooms,” says the analysis. For the survey, 1,400 heads of large companies from twelve countries around the world were interviewed from August 11th to September 21st, including 125 from Germany.

Development in Germany more dynamic

In the next three years, almost 70 percent of the company bosses surveyed in Germany expect profit growth of 2.5 percent or more for their company. In 2025 it was only 42 percent. The company 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 believe the German economy will experience greater growth this year. Most recently, the federal government more than doubled its forecast for 2026 to 1.3 percent.

However, company bosses' view of the global economy remains cloudy: almost two thirds (62 percent) expect growth, after 64 percent in the previous year, according to the survey, which took into account companies with annual sales of more than 500 million dollars (more than 445 million euros). “German company bosses therefore assess the global environment somewhat more cautiously than their international colleagues,” writes KPMG.