On September 8, 2026, KfW Chief Executive Stefan Wintels and Chief Economist Dirk Schumacher presented the state-owned promotional bank's latest strategic study in Frankfurt am Main. The publication, titled "Standort Zukunft. Wie Deutschland zu neuer Stärke und Wachstum findet", analyzes the decisive levers required to revitalize the economic trajectory of the Federal Republic. At the heart of the analysis lies the pressing question of how the German business location can overcome persistent structural weaknesses and return to a reliable expansion path. KfW positions the research paper as a strategic compass for upcoming economic decisions.
The macroeconomic diagnosis outlined in the study is characterized by sober realism. Germany's potential economic growth has recently stagnated at a rate barely above zero percent per year, severely restricting the operational room for maneuver for both the private and public sectors. In response, KfW sets an explicit target to lift annual potential growth back above one percent over the course of the coming decade. To achieve this ambitious turnaround, the bank identifies a sustained reversal in productivity growth as the primary lever, since labor volume alone cannot sustain expansion.
The promotional bank identifies the widespread deployment of artificial intelligence as the most effective catalyst for this needed productivity boost. During the presentation, Chief Executive Stefan Wintels formulated a clear strategic priority for the domestic economy. Germany does not need to become the global champion in developing foundational artificial intelligence models, Wintels argued. Instead, the country must dedicate its efforts to becoming the number one nation for AI applications across industry and the SME sector, commonly referred to as the Mittelstand. This strategy prioritizes tangible value creation over a costly race for basic model architecture.
To translate this strategic orientation into concrete action, KfW accompanied its study with a detailed twelve-point policy paper. The document urges a far closer and more systematic interconnection between established Mittelstand enterprises, emerging technology startups, and private venture capital providers. According to the authors, only targeted venture capital mobilization will bridge the persistent divide between young innovators and traditional manufacturing operations. The study stresses that advanced AI solutions can unfold their full macroeconomic impact only when smoothly incorporated into mature operational processes.
Scaling AI solutions directly into existing industrial value chains represents the central benchmark for success highlighted throughout the report. Rather than subsidizing isolated pilot experiments, economic policy must enable medium-sized businesses to embed intelligent systems permanently across procurement, production, and supply chains. If this widespread adoption succeeds, the authors argue, German industry can sustainably safeguard its competitive standing in global markets. The promotional bank warns against losing critical time in the practical implementation phase.
With this blueprint, Stefan Wintels and Dirk Schumacher intend to reshape the economic policy debate regarding Germany's industrial future. Raising the potential growth rate above the one percent threshold demands a concerted effort across the financial sector, traditional industries, and tech-driven founders. The paper underlines that prosperity and competitiveness over the next decade will hinge directly on how rapidly the Mittelstand integrates artificial intelligence into daily operations. For Germany, practical AI adoption offers a realistic opportunity to regain long-term economic momentum.