Germany Faces Lowest Investment Level Since 1990, Sparking Economic Concern

Germany’s investment levels have reached a historic low in 2025, hitting the smallest net investment rate since reunification in 1990. Official figures from the Federal Ministry of Economics and the Federal Statistical Office reveal that investments in construction, machinery, equipment, and infrastructure slid to a net investment rate of -0.23% relative to GDP.

This rate reflects the difference between investments and depreciation and points to a long-term downward trend. Between 1991 and 1999, the average net investment rate stood at 7.31%, but it fell sharply in the following decades—dropping to 2.88% from 2000 to 2009, 2.29% between 2010 and 2019, and averaging only 1.02% from 2020 to 2025.

Cem Ince, a politician from the Left party who analyzed the data, criticized the current state, saying, “Germany is running on wear and tear. Dilapidated schools, broken roads, and a declining infrastructure are evident in the numbers. We have been investing too little for years.” He called for a wealth tax and an investment offensive as necessary steps to reverse this trend.

The Institute of the German Economy in Cologne echoed these concerns. Hubertus Bardt, the institute’s managing director, pointed out that over 80% of investments come from the private sector, which currently suffers from low confidence due to uncertain economic conditions. Although there is hope that increased public investments through special funds could stimulate growth, Bardt cautioned that companies remain focused primarily on replacement investments, making it unclear whether this would spark broader private sector dynamism.

Overall, the data underscore a severe investment drought in Germany’s economy, with potential long-term consequences for infrastructure and economic competitiveness if corrective measures are not taken rapidly.