News from 2025-11-04 / KfW Research
KfW SME Panel 2025
Steady course but headwinds loom: SMEs were stable in recession year, trade conflicts on the horizon
Despite economic headwinds, SMEs exhibited stability last year. Their turnover increased slightly, employment rose to a record level and profit margins are robust amid continuing cost pressure. However, they continue to show little inclination to invest, with larger businesses in particular exercising restraint. The investment outlook, at least, is more favourable. There are cautious indications of an investment rebound in the SME sector. Interest expenses have grown significantly, reaching the highest level since 2014. SMEs’ debt sustainability ratios are nonetheless high, thanks in part to their solid financial basis. Their equity base remains stable. These are the findings of the KfW SME Panel 2025, which paints a comprehensive picture of the present situation and the development of small and medium-sized enterprises during the past year.
Further information on our dedicated page KfW SME Panel
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