News from 2017-10-24 / KfW Research

KfW SME Panel 2017

Germany’s SMEs continue to break records – sectoral transformation poses new challenge

German SMEs presented themselves in top shape in 2016. As employers they are more important than ever, and their workforce has reached an unprecedented level. Sectoral structural transformation is making a clear imprint on SMEs, with most employment growth taking place in service industries in the past years. Germany’s transition to a service society, however, is slowing down productivity advances in the SME sector. Nevertheless, enterprises are growing at a fast pace, returns and profitability are good, and equity ratios are on record levels. Investments are also growing strongly again and the favourable financing environment has nurtured this trend. The signs remain promising. Strong domestic demand promises sustained high growth, a new employment record is foreseeable, and signs of stronger growth in corporate investment are emerging.

KfW SME Panel 2017

Press release

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