A recent study reveals a significant shift in sentiment among German business leaders regarding the nation’s economic transformation, although critical assessments remain. Conducted by management consultancy Kearney and the industry-affiliated Institute for Economic Research (IW) and reported by Handelsblatt, the study indicates a marked improvement in perceived progress compared to last year.
Where previously pessimism reigned, 318 surveyed executives now rate the transformation process at 3.5 out of 5, a considerable upgrade from the 4.4 rating reported in 2024. The study highlights a sector-specific divergence; industries like pharmaceuticals, banking & insurance and technology are demonstrating signs of advancement reflected in key performance indicators. Conversely, the energy and automotive sectors lag behind, registering among the lowest scores.
This renewed optimism, however, is tempered by a palpable warning from the study’s authors. They caution that a genuine economic turnaround remains elusive. The current positivity, they suggest, masks underlying structural challenges that require urgent and accelerated action. “Speed is paramount; we cannot afford to fall behind” cautioned Marc Lakner, CEO of Kearney Germany, underscoring the necessity for businesses to dramatically accelerate their individual transformation strategies.
The findings raise significant questions about the sustainability of the improved sentiment and expose potential vulnerabilities within critical industries. While boosted by certain sectors, the continued struggles in energy and automotive – two pillars of the German economy – suggest deep-rooted issues that require more than just a change in perception. The study implicitly challenges policymakers to implement supportive measures and incentivize swift, decisive action to prevent a potentially damaging loss of global competitiveness.