Germany's competitiveness rated lowest since Alvarez & Marsal survey began
Summary
Business leaders have rated Germany’s competitiveness at its lowest level since the Alvarez & Marsal survey began in 2024, reflecting ongoing concerns about the nation's economic landscape. This decline is corroborated by various 2026 rankings from organizations such as IMD, which have noted a downturn in government and business efficiency. Additionally, German companies are increasingly worried about their ability to sustain positions in key export markets amid changing global dynamics, further contributing to the pessimistic outlook.
Analysis
Germany: Germany is Europe's largest economy with a major industrial and export-oriented manufacturing sector. Recent business surveys, including one from Alvarez & Marsal, indicate that leaders view its overall competitiveness as having reached a low point since tracking began in 2024 amid broader economic pressures. Alvarez & Marsal: Alvarez & Marsal is a global professional services firm specializing in management consulting, restructuring, and performance improvement for businesses and institutions. It produces periodic surveys capturing business leaders' assessments of national economic competitiveness and policy environments. The firm launched its survey series on Germany in 2024, with the latest edition marking the lowest competitiveness rating to date. Policy Feedback: Business leaders in recent surveys have highlighted perceived shortcomings in government handling of economic issues such as taxation and regulatory costs. Industry Outlook: German companies report ongoing concerns about their ability to maintain positions in key export markets amid shifting global dynamics. International Assessments: Multiple 2026 rankings from organizations like IMD have placed Germany lower in global competitiveness compared to prior years, citing declines in government and business efficiency.
Categories
politicsmacro
Related sources
- https://www.bundeswirtschaftsministerium.de/Redaktion/EN/Dossier/WirtschaftlicheEntwicklung/aktuelle-lage.html
- https://www.qnb.com/sites/qnb/qnbglobal/en/eco20260927news
- https://www.ifo.de/en/opinion/why-germany-is-falling-behind-in-competitiveness
- https://www.monopolkommission.de/en/publications/main-reports/competition-2026-towards-a-competition-oriented-economic-policy
- https://www.bundeswirtschaftsministerium.de/Redaktion/EN/Pressemitteilungen/Wirtschaftliche-Lage/2026/20260917-the-economic-situation-september-2026.html
- https://www.ifo.de/en/facts/2026-09-24/ifo-business-climate-rises-september-2026
- https://www.politico.eu/article/germanys-growth-outlook-jumps-along-with-need-to-fix-finances/
- https://ec.europa.eu/assets/rtd/eis/2026/ec_rtd_eis-country-profile-de.pdf
- https://weltwoche.ch/daily/inkompetent-und-wirtschaftsfeindlich-deutsche-manager-stellen-der-ampel-regierung-ein-vernichtendes-zeugnis-aus/
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- https://www.ifo.de/en/news/2026-08-19/one-four-companies-germany-fear-their-competitiveness
- https://www.gulf-times.com/article/734179/business/germany-is-now-an-economic-laggard-in-the-eu-says-qnb
- https://www.rolandberger.com/publications/publication_pdf/26_2085_FLY_AmCham_business_barometer_EN_05.pdf?v=1834637
- https://www.moneydj.com/kmdj/news/newsviewer.aspx?a=e58874f8-fe40-4f70-9955-120bbe6f8db1