KfW Survey: Companies See High Investment Needs but Hold Back

High Need, Low Implementation

The need is particularly great in the area of digitalization: 53 percent of companies see pressure to act there. Digitalization thus clearly tops the list of investment fields, ahead of decarbonization and innovation. KfW Chief Stefan Wintels summed up the discrepancy between need and actual activity: "Deutschland steht vor einer großen Investitionsaufgabe - staatlich wie privat. Unsere Unternehmen wissen dabei sehr genau, wo sie investieren müssen - in Digitalisierung, Dekarbonisierung, Innovation. Doch zu viele Projekte bleiben seit Jahren in der Warteschleife."

In addition to the untapped potential, companies primarily complain about the economic framework conditions. As the main reason for their reluctance, companies that did not invest in 2025 cited the overall economic environment, followed by the high costs of energy, materials, and wages. Added to this are declining equity ratios: around 31 percent of them reported in early 2026 that their equity ratio had fallen over the past twelve months. Only 23 percent reported an improvement.

The economic outlook is also clouded. 40 percent expect further declines in demand for their products and services, while only 20 percent reported increases. 46 percent of the companies surveyed recorded declining demand over the past twelve months. Skepticism thus clearly predominates – particularly among smaller firms. Larger companies, meanwhile, are more optimistic about the future than micro-enterprises.

Tightened Financing Climate

According to KfW, financing conditions have continued to deteriorate. The share of companies that considered taking out a loan to be easy was just 24 percent – eight percentage points lower than in 2024. Conversely, around 26 percent of companies find taking out loans difficult. The smaller the companies surveyed, the more difficult it was for them to obtain financing.

The creditworthiness of many firms is also under pressure. For 2025, 25 percent of companies reported a deterioration and only 14 percent an improvement in their rating. The 2026 company survey shows that the financing climate has clouded over further compared to the previous 2024 survey. Despite these adversities, 61 percent of the firms surveyed plan to actually implement investment projects in the coming twelve months.

Demands on Policymakers

Wintels sees policymakers as having a duty. "Wenn wir Bürokratie abbauen, Planungssicherheit stärken, qualifizierte Einwanderung ermöglichen und Finanzierung verlässlich verfügbar machen, kann sich diese Zurückhaltung schnell in eine neue Dynamik verwandeln", said the CEO of KfW. At the same time, he offered the development bank's assistance: "Als Förderbank des Bundes stehen wir bereit, tragfähige Vorhaben zu finanzieren und Risiken zu teilen." KfW supports small and medium-sized enterprises on behalf of the federal government with numerous promotional programs.

Most frequently, they see this in the area of digitalization, where 53 percent report a need. According to KfW's assessment, the investment backlog threatens not only to delay the competitiveness of the German economy, but also the transformation toward climate neutrality and digital sovereignty. Which specific projects will actually be launched in the coming months depends, according to Wintels, crucially on whether the political framework conditions are improved quickly.

KfW, headquartered in Frankfurt am Main, sees itself as a central actor in closing the gap between investment intention and investment reality. KfW, Palmengartenstr. 5 - 9, 60325 Frankfurt