Germany Where Is The Stimulus

The German economy has remained largely stagnant for six years, weighed down by a 12.1% drop in private investment. While substantial public stimulus is now flowing into defense and infrastructure, achieving future growth requires structural reforms to reinvigorate the private sector.

Key Takeaways

• 1.German public investment has surged since 2023, driven by military and infrastructure funds, but private investment remains depressed.
• 2.The German economy has experienced stagnant growth for six years, with private investment down 12.1% against 2019 levels.
• 3.Fiscal stimulus is expected to add 0.3ppt to GDP growth in 2026, with further impacts expected through 2029.

Table of Contents

• What is the problem?
• Where is the stimulus?
• First progress report
• Assessing the impact
• Supply matters more than demand

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