A new McKinsey study highlights Germany’s alarming drop in productive net investments, now at just 0.2% of GDP.

Germany ranks last among 34 industrial and emerging nations, far behind China at 23%, the USA at 4%, and the EU at 2%. The study indicates a severe investment boycott, with minimal growth-focused investments.

High costs, particularly in labor and energy, coupled with slow approval processes, are driving investors away. Developing new electric vehicle platforms in Germany is three to four times more expensive than in China, underscoring the urgent need for increased innovation and productivity.