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Germany Tagesschau

The German economy has many problems. But despite all the negative news, there are also opportunities. Because in some markets of the future, domestic companies have a good chance. By Angela Göpfer

Deutsch (original) ·Auto-translated to English

The German economy has many problems. But despite all the negative news, there are also opportunities. Because in some markets of the future, domestic companies have a good chance.

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Germany is better positioned in some future areas than the crisis debate suggests. The management consultancy McKinsey has identified 14 dynamically growing markets in which German companies have good prerequisites: from biotechnology and medical technology to robotics and new materials to climate-friendly energy technologies and quantum computing.

The global market potential of these “growth arenas” will add up to more than $40 trillion by 2040, says Luca Flora from McKinsey in an interview with the ARD financial editorial team.

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In order to take advantage of these opportunities, Christian Rammer from the Leibniz Center for European Economic Research (ZEW) believes that Germany must also rethink its previous successful model: "In the past decades, we have always thought of growth as growth in exports: Where can we produce something here in Germany and then sell it to the world?"

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However, in the growth debate, Germany focuses too much on factories and industrial production. In his opinion, the service sector offers particularly great opportunities. “Where people work for other people – that is actually the big growth area,” says Rammer.

Already today, a good 71 percent of German gross value creation occurs in the service sector. Nevertheless, compared to other European countries, Germany is still very industrial: in 2025, the manufacturing sector accounted for 22.9 percent of gross value added, compared to the EU average of just 19.1 percent.

However, some experts see Germany's industrial tradition as an advantage. "Germany has something that Silicon Valley lacks: namely machines, systems, production data - and that goes back decades," says Barbara Engels, expert on sustainable digitalization and artificial intelligence at the German Economic Institute (IW).

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In general, many companies in this country hardly seem to be exploiting their potential. This emerges from an analysis by the management consultancy McKinsey. Between 2019 and 2023, just 29 of 16,200 companies examined - 0.2 percent - were responsible for 47 percent of the productivity growth in this group of companies. McKinsey expert Jan Krause emphasizes that the crucial dividing line does not run between industries, but rather “between courage and hesitation.”

So Germany is not lacking in growth opportunities. The only question that remains is how the conditions can be created to actually use them.

Originally published byTagesschau
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