The cross-industry coalition, comprising 147 companies and investors and backed by corporate heavyweights including Siemens and Deutsche Bank, identified five sectors where global capital could align with Germany’s industrial strengths and ongoing economic reforms.
The sectors are artificial intelligence (AI), industrial transformation and next-generation technologies, resilient energy systems, core infrastructure, and security and defence.
The findings offer a potential boost to Chancellor Friedrich Merz’s efforts to revive Europe’s largest economy after years of sluggish growth. However, the initiative warned that high business costs and regulatory burdens continue to weigh on Germany’s competitiveness.
The report argues that the country’s political and legal stability, research capabilities, skilled workforce, industrial base and access to the European single market could help attract long-term investment, provided policymakers deliver reforms consistently.
The report is due to be presented to Economy Minister Katherina Reiche by the chief executives of Siemens and Deutsche Bank.
Made for Germany targets 850 billion euro in investment by 2028
The investment outlook builds on commitments already announced by the business coalition. Made for Germany said its members planned to invest more than 850 billion euro in the country through 2028, following investments exceeding 200 billion euro in 2025.
The initiative has also invited additional companies and investors to join, while urging the government to accelerate reforms and reduce barriers to business investment.
The estimated 2.9 trillion euro-4.1 trillion euro opportunity represents potential financing and investment across selected growth sectors, rather than a confirmed pipeline of projects or guaranteed capital inflows.
Turning that potential into actual investment will depend on Germany’s ability to improve its business environment, strengthen industrial competitiveness and provide companies with greater certainty over long-term spending decisions.
The report comes as the German government has revised its economic growth forecasts upwards for 2026 and 2027, signalling a more resilient outlook than previously anticipated.
Berlin now expects the economy to grow by 1.3% in 2026 and 1.1% in 2027, compared with its earlier projections of 0.5% and 0.9%, respectively. Growth is forecast to slow to 0.6% in 2028.
The economy expanded by 0.3% in the second quarter, despite higher energy prices linked to the Iran war and uncertainty surrounding US tariffs.
“Germany’s economy is growing; that is an important signal. But it is only the beginning,” Reiche said while presenting the revised forecasts.
“What matters now is turning this initial recovery into genuine economic momentum.”
The government expects public investment in infrastructure and the strengthening of the armed forces, alongside stronger exports, to support the recovery. Exports are projected to rise by 3.7% in 2026, before growth moderates to 2.1% in 2027 and 1.1% in 2028.
Finance Minister Lars Klingbeil also welcomed the improvement, pointing to government spending as a key contributor to the economic upturn.
However, the recovery remains fragile. Germany’s economic performance has been a source of political pressure for Merz’s governing coalition, as voters continue to contend with high living costs and concerns over the country’s industrial competitiveness.
Despite the improved growth outlook, inflation continues to cloud Germany’s economic prospects.
The government expects inflation to reach 2.7% in 2026 and 3.0% in 2027, before easing to 2.2% in 2028. Higher energy prices linked to the conflict in the Middle East remain a concern for households and businesses.
To ease pressure on motorists, the government plans to cut taxes on petrol and diesel by 0.17 euro per litre from October through the end of December.
Germany’s constitutionally mandated debt brake also constrains the government’s borrowing flexibility, even as additional spending on infrastructure and defence supports economic activity.
The improved growth outlook is expected to increase the scope for new borrowing by a combined 6.8 billion euro over the 2028-2030 period. However, the available borrowing room for 2027 will fall by 2.5 billion euro to 9.8 billion euro.
The economy ministry has also warned that growth prospects beyond 2027 remain weak, underlining the need for reforms that can support private investment and make the recovery more sustainable.
For Germany, attracting capital into AI, next-generation manufacturing, energy infrastructure and defence could help strengthen its industrial base while opening new avenues for economic growth.
The challenge will be to turn investor interest into tangible projects amid persistent cost pressures, regulatory hurdles and geopolitical uncertainty.
The government has acknowledged that the recovery will require more than public spending. Reiche has stressed the importance of continuing structural reforms to build durable economic momentum.
The economy ministry has also cautioned that future growth will depend significantly on developments in the Middle East and Ukraine. A lasting resolution to the conflicts could accelerate the recovery, while prolonged instability and inflation could weigh on companies and households.