• 92 per cent of surveyed businesses report that they need to invest, but only 61 per cent plan to do so in the coming months
• KfW CEO Stefan Wintels: “Too many projects have been on hold for years.”
• Almost half of businesses experienced a drop in demand in the previous twelve months
• More than one fourth of businesses currently perceive access to credit as difficult

Businesses in Germany are experiencing major gaps in investment. In a business survey which KfW has conducted jointly with 19 German umbrella organisations as well as professional and regional business associations, 92 per cent of companies reported a general need to invest. Digitalisation was mentioned most often, with 53 per cent of businesses reporting a gap. At the same time, however, only 61 per cent of businesses also plan to carry out investment projects in the coming twelve months.

That is just slightly more than the share of businesses that completed investments last year, which was 57 per cent. This level was even below that of the crisis year 2009, when 68 per cent still invested. The businesses that did not invest in 2025 described the macroeconomic environment as the main reason, followed by high costs of energy, materials and wages.

Access to finance is particularly difficult right now. The Business Survey 2026 shows that the financing environment has worsened further since the previous survey of 2024. The share of businesses that found it easy to obtain a loan was merely 24 per cent – eight percentage points lower than in 2024. Around 26 per cent described taking out a loan as challenging. The smaller the surveyed businesses were, the harder it was for them to obtain finance.

In addition, many businesses in Germany are currently in a difficult economic situation. According to the survey, 46 per cent of them experienced a drop in demand in the preceding twelve months. Only 20 per cent reported an increase. There are no signs of a trend reversal in the coming twelve months either, with 40 per cent expecting a further decrease in demand for their products and services. Larger businesses have a more optimistic view of the future than micro-businesses.

The economic weakness is also putting pressure on the capital structure of businesses. Around 31 per cent reported in the spring of 2026 that their equity ratio fell in the previous twelve months. Only 23 per cent reported an improvement. Ratings also worsened, with 25 per cent of businesses reporting a decline in their rating for 2025 and only 14 per cent an improvement.

“The figures show that Germany faces a major investment challenge –both public and private. Our companies know exactly where they need to invest – in digitalisation, decarbonisation and innovation. Yet too many projects have been on hold for years,”

said Stefan Wintels, CEO of KfW.

“If we cut red tape, enhance planning certainty, facilitate skilled immigration and ensure reliable access to finance, this reluctance can quickly give way to a new momentum. As the Federal Government’s promotional bank, we stand ready to finance viable projects and share risks. The task now is to translate the courage for renewal into concrete investments – together with the world of politics, banks and associations – so that caution gives way to confidence, and deliberations turn into concrete investments.”

The full study is available at Business Survey | KfW.

About the Business Survey: The survey was conducted for the 23rd time among enterprises of all size classes, sectors, legal forms and regions. Just under 1,567 businesses from 19 umbrella organisations, trade and regional associations participated. It was conducted between the beginning of March and the end of April 2026 and essentially reflects the situation and sentiment prevailing in the year 2025 and at the beginning of 2026.

KfW supports SMEs with a number of promotional programmes on behalf of the Federal Government. More information is available at We are strengthening the SME sector (German page).