German business leaders more optimistic about growth, survey finds

German business leaders are becoming more optimistic about their companies' prospects for the first time in years, with 86% expecting growth over the next three years, a survey by consultancy KPMG showed.

That was up 14 percentage points from 72% last year. The figure was 77% in 2024 and 80% in 2023.

Germany's economic outlook has improved, with cautious optimism returning to boardrooms, KPMG said. The consultancy surveyed 1,400 executives in 12 countries between August 11 and September 21, including 125 in Germany.

Nearly 70% of German respondents expected profit growth of at least 2.5% over the next three years, up from 42% last year. Confidence in their own industry and Germany as a business location also improved, both reaching 78%.

The German government recently more than doubled its 2026 growth forecast to 1.3%.

However, confidence in the global economy remained subdued, with 62% expecting growth, down from 64% last year, according to the survey, which covered companies with annual revenues of more than $500 million.

KPMG Germany chief Mattias Schmelzer said the optimism was driven less by hopes of improving conditions or global trade than by companies investing in new technologies and boosting competitiveness.

Artificial intelligence (AI) was a top investment priority for 77%, while 94% expected returns from AI within three years or had already achieved them. Some 90% were considering acquisitions over the next three years.

Despite the growing confidence, executives cited regulation (30%), geopolitical instability (29%) and a weak global economy (27%) as their biggest growth risks.