German business leaders turn optimistic with 86% expecting growth

After several years of sluggish sentiment, optimism is returning to executive boardrooms across Germany. A new survey of large companies reveals that 86 percent of German business leaders anticipate growth over the next three years, marking a sharp 14 percentage point increase from 2025.

Why German corporate leaders are betting on growth

In its latest global study of corporate leadership, consulting firm KPMG surveyed 1.400 heads of large enterprises across 12 countries, including 125 chief executives in Germany. All participants lead companies with annual revenues exceeding 500 million US dollars.

According to Mattias Schmelzer, head of KPMG Germany, those expectations are not fuelled by hopes for better conditions or global trade tailwinds. Rather, companies are taking matters into their own hands, investing in new technologies like artificial intelligence to sharpen their competitiveness, reports Handelsblatt.

The numbers back this up: artificial intelligence ranks as the top investment priority for 77 percent of surveyed executives, with 94 percent stating they have already achieved a return on their AI investments or expect to within three years.

Alongside tech upgrades, 90 percent of corporate leaders are considering acquisitions over the next three years to expand, leading nearly 70 percent to forecast profit growth of at least 2,5 percent.

Confidence in Germany grows despite external risks

The renewed confidence also extends to the domestic business climate. According to the survey, 78 percent of business leaders hold a positive view of their own industry, up from 71 percent last year.

An identical 78 percent express confidence in Germany as a business location, rising from 75 percent in 2025. This brighter mood aligns with official projections, as the German government recently more than doubled its 2026 economic growth forecast to 1,3 percent.

Business leaders' assessment of the wider world, however, remains far more cautious. Only 62 percent of German executives expect global economic growth over the coming three years, down from 64 percent last year. 

Despite their internal growth plans, executives stressed that major external obstacles could still derail their momentum. When asked to identify the biggest threats to future expansion, executives pointed to heavy regulation and bureaucracy at 30 percent, closely followed by geopolitical instability at 29 percent and a sluggish global economy at 27 percent.