Germany's long successful growth model, which is based on the export of high-quality capital goods in a multilateral trading system, is coming under increasing pressure. In location competition, Germany offers a mixed picture of strengths and weaknesses. The stagnation that has now lasted for five years is making structural problems more and more visible. The global shifts in geopolitics are driving the urgency for Germany and Europe to take security and defence more into their own hands. But this should not obscure the fact that we also need to move ahead on addressing major societal and economic challenges – and in particular to master the transformation to climate neutrality, drive forward digitalisation and innovation, address demographic change, secure a sustainable supply of energy and natural resources and strengthen international competitiveness.

Managing the transition, strengthening growth(PDF, 373 KB, accessible)

Further information on Germany's pursuit of climate neutrality