Horizon Germany

"Germany, leading economy of the euro zone with a GDP representing more than a quarter of that of the zone, remains a leading partner for French SMEs, despite a loss of competitiveness in certain industrial sectors.

To counter this trend, the country has committed more than 700 billion in infrastructure, the energy transition and climate. Germany is thus giving itself the means to achieve its goal of producing 80% of its electricity comes from renewable energy sources. from here 2030.

Furthermore, household consumption, boosted by purchasing power, continues to support growth. With moderate debt and a sound financial system, Germany offers a stable environment to the internationalization of French SMEs »

Olivier VINCENT – Executive Director in charge of Export – Bpifrance

KEY FIGURES

• Population : 83,8 million inhabitants
• GPD : 5328 billion (in USD)
• 3ème world economic power
• Currency : EUR
• Exchange rate regime : Stable

COUNTRY RISKS

• A weakened industry: The price competitiveness of German industry is eroding, penalized by higher than average energy prices in EU countries, and by more dynamic wage costs.
• A fragility exacerbated by the global environment: Export opportunities are becoming more limited, in a context of rising trade tensions and competitive pressure, as evidenced by the gradual decline in the trade surplus.
• The working population is aging: According to the German national statistics institute, the working-age population is expected to decline in the coming years. This would exacerbate tensions in the labor market and negatively impact growth.
• A more precarious political balance: The narrow majority of the CDU–SPD government makes it more difficult to adopt reforms, and maintains a climate of uncertainty, reinforced by the growing influence of extreme parties in the Bundestag.

AREA OPPORTUNITIES

• Support for private investment and industry: The Growth Booster plan, adopted in July 2025, aims to revive private investment, while the 2026 budget intends to halt the loss of industrial competitiveness, notably through the introduction of a subsidized electricity tariff.
• Dynamics of public investment: The implementation of the SVIK Special Fund, intended to finance €500 billion of investments in infrastructure and energy transition over twelve years, as well as the increase in defense spending, opens up new perspectives in strategic sectors.
• Rapid development of renewable energies: Germany aims for 80% of its electricity to be produced from renewable sources by 2030 (58% by 2024), and almost entirely by 2035. To achieve these goals, the Renewable Energy Act simplifies the procedures for installing new capacity.
• A robust labor market: The unemployment rate remains low and wage increases are planned for this year, supporting business opportunities.

To discover the full content, check out our edition Horizon Germany.