A majority of business leaders across Germany are optimistic about the national economy, maintaining similar levels over the past four years. According to our Business Leaders Outlook survey, 59% of executives have a positive outlook about the German economy—a 5-point uptick from last year—while aware of a challenging economic landscape ahead.
As it gets closer to home, 70% of leaders are optimistic about their industry’s performance this year, and 81% are optimistic about their company’s performance in 2024, an improvement on last year’s numbers and more consistent with responses seen in 2021 and 2022.
Overwhelmingly, German businesses anticipate their companies will grow. Seventy-eight percent expect revenue and sales will beat their 2023 numbers, and 75% said profits will increase over the previous year. Inflation continues to put pressure on companies; 73% said their costs are rising, a 4-point increase compared to one year ago.
As policymakers try to curb inflation, German businesses are feeling the effects. Rising interest rates and uncertain economic conditions are among the most common business concerns.
As artificial intelligence and machine learning have rapidly entered the mainstream, German leaders are embracing the new technology—with a level of care. A commanding 82% of companies said they are using or considering AI tools, and 28% of leaders identified adoption of AI/machine learning as one of their business’s primary challenges.
Contributors
Stefan Povaly
Head of Germany, Senior Country Officer
Bernhard Brinker
Head of Commercial Banking, DACH Region
Michele Iozzolino
Head of Investment Banking, Germany
Thorsten Zahn
Head of Equity Capital Markets, DACH Region
Alexander Voigt
Head of Investment Grade Finance, DACH Region and Infrastructure Debt Capital Markets Financing Lead, Europe
Viktoria Boecker
Head of Commercial Banking Treasury Management, DACH Region
Caroline Pötsch-Hennig
Head of Private Banking, Germany
About the survey
In its fourth year, the annual Germany Business Leaders Outlook survey is a snapshot capturing the concerns and expectations of senior business leaders at midsize companies with annual revenues generally ranging from €20 million and €2 billion.
This year, 251 respondents completed the online survey between November 16 and December 13, 2023. Results are within statistical parameters for validity; the error rate is plus or minus 6.0% at the 95% confidence interval.
Read our other 2024 Business Leaders Outlook Reports.
JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.
