Overview
- Official figures released Tuesday put the 2025 net fixed‑capital formation at minus 0.23% of GDP, marking the first net contraction recorded since 1990.
- The metric subtracts depreciation from spending on buildings, machines and software, so a negative reading means the country’s stock of productive assets shrank over the year.
- The data confirm a long slide, with average net investment at 7.31% in the 1990s, 2.88% in the 2000s, 2.29% in the 2010s, and 1.02% between 2020 and 2025.
- More than four‑fifths of investment comes from companies, and the IW’s Hubertus Bardt said firms lack confidence and are mostly replacing worn assets, casting doubt that the government’s special infrastructure fund alone will spark a broader upswing.
- Linke lawmaker Cem Ince called the situation proof that Germany is “running on wear” and pressed for a wealth tax and an emergency investment push, while reporting indicates the government favors its special fund and has rejected those proposals.