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Where Germany's economy still excels

DW English · May 3, 2026, 6:17 AM

Key takeaways

  • German industry is being lapped in key sectors like solar panels, semiconductors and even cars — but the country's midsize businesses suggest the economy isn't losing its edge.
  • Take the photovoltaic sector, for example, where Germany had a lead but the real action has long since shifted to East Asia.
  • Germany still ranks among the top five largest economies in the world, even as growth forecasts are slashed.

Why this matters: an international story with cross-border implications worth tracking.

German industry is being lapped in key sectors like solar panels, semiconductors and even cars — but the country's midsize businesses suggest the economy isn't losing its edge.

https://p.dw.com/p/5DAVEGerman firm Ottobock provides almost all athletes at the Paralympics with prostheses, orthoses or wheelchairs Image: Michael Matthey/dpa/picture alliance Advertisement For years, doubts have grown about the international competitiveness of German industry. Take the photovoltaic sector, for example, where Germany had a lead but the real action has long since shifted to East Asia. Similarly, its famed automotive industry is fast losing ground, particularly compared to China.

Yet some German giants remain global leaders, including SAP, Europe's largest software provider, Deutsche Telekom, a leader in telecommunications and DHL Group, the world's top logistics and international express shippingfirm.

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