Germany needs additional investment of €1.4 trillion by 2030 – BDI

Germany needs additional private and public investment of €1.4 trillion by 2030 to remain internationally competitive in the future. This is stated in a study published by the BDI business association, VerkehrsRundschau reports.

As noted, about 20% of industrial value creation in Germany is at risk

According to the report, the country’s long-term burden as a place to do business is high energy prices compared to global ones, labour shortages, excessive bureaucracy, deteriorating infrastructure, lack of investment, and slow digitalisation and expansion of the energy grid.

‘Without decisive countermeasures, Germany faces a scenario of creeping deindustrialisation, with energy-intensive industrial sectors gradually moving their production elsewhere, the automotive industry losing a significant share of the global electric vehicle market, and German companies lagging behind in the development of future technologies,’ said BDI President Siegfried Russwurm.

He called on policymakers to take a ‘big leap forward’ to bring Germany back to the forefront of international competition and achieve its goals of a climate-friendly economic transformation. According to the study, the country needs to redefine itself as an industrial power.

The study ‘Ways of Transformation’ was commissioned by BDI and conducted by the Boston Consulting Group and the German Economic Institute (IW) in cooperation with more than thirty companies and associations.

As GMK Center reported earlier, the Kiel Institute for the World Economy (IfW) forecasts a 0.1% decline in Germany’s GDP this year. In its summer forecast, the IfW expected the country’s economy to grow by 0.2% in 2024. Economists also lowered their GDP growth forecasts for 2025 to 0.5% from the previous 1.1%.