German companies invest in Poland
According to the report Poland was chosen as the place to invest capital by 56 percent. German companies planning investments in the regionwhich means increase by 11 percentage points year to year i the highest result among the countries of Central and Eastern Europe.
Ukraine came in second place with 43 percent. indications. The report shows that 19 percent companies declare their readiness to invest in this country even in the event of a continuing war, and another 19 percent are already present on this market. Third place was taken by Romania and the Czech Republic, indicated by 35%. respondents.
The study shows that Central and Eastern Europe is strengthening its position in the strategies of German companies. Already 63 percent German companies expect the region’s importance to increase in the next five years, and 55 percent plans to implement investments in this period.
Simultaneously 32 percent enterprises intend to implement investment projects worth more than EUR 5 million. The most frequently indicated investment directions are services (31%) and expansion of production capacity (29%), and approximately 22%. companies plan to strengthen export and distribution structures.
Central and Eastern Europe attracts investors
More and more companies are also exploring the possibility transfer of part of production from Germany to the region. Such a relocation 26 percent are considering enterprises, indicating as the main reasons rising labor costs, staff shortages and structural challenges in the German market.
The authors of the report emphasize that Central and Eastern Europe attracts investors among others thanks to a population of approximately 155 million inhabitants, growing purchasing power and projected economic growth in the region of nearly 2.9%. in 2026
Top priorities
The region is increasingly perceived as… center of innovation and research and development activities. Among The main investment priorities of companies are dominated by artificial intelligence and automation (38%).idigital infrastructure (23%) and defense sector (20%).
In turn, the most promising sales markets in the region are: renewable energy (45%), electromobility and battery technologies (40%) and raw material processing (36%).
More competition
However, the growing attractiveness of the region also means greater competition. About 16 percent surveyed companies indicate growing pressure from companies from China, that increase investment and export activity in Central and Eastern Europe.
Record level of trade
According to the report, trade between Germany and the countries of the region reached a record level of EUR 529.3 billion in 2025. This is more than the combined value of Germany’s trade with the United States and China.
Most German companies positively assess their current situation in the region – 47%. describe it as good or very good, and 39 percent as stable. Within five years, 75 percent enterprises expect improvement in business conditions in Central and Eastern Europe.
Employment plans
Employment plans remain moderately optimistic – within the next year 56 percent companies assume maintaining the current level of employment, and 23 percent plans to increase it. 61% of people declare that they will create new jobs within a five-year horizon. enterprises.
The report also points to the growing importance of the shared services sector. Shared services and business process outsourcing centers (SSC/BPO) were indicated as the most important operating model in the region by 74 percent. surveyed companies.
“German-Central and Eastern European Business Outlook 2026” is an annual opinion survey prepared jointly by KPMG in Germany and the Eastern Commission of the German Economy. The report was based on surveys conducted between November 2025 and January 2026 among 115 companies – German enterprises and local subsidiaries of German groups operating in the Central and Eastern European region. The study covers 20 CEE countries and focuses on assessing the current business situation, investment plans, and opportunities and challenges for German business in the region.
