Germany in January 2026: the most important developments in economy
In Germany in January 2026, the most covered economic story was the fall in shares of software company SAP. On 29 January SAP shares dropped by their largest daily percentage in years after the company reported disappointing figures for its cloud business backlog and future guidance, although it met fourth-quarter revenue forecasts. Siemens overtook SAP as the most valuable company on the DAX index. SAP had already reached a 17-month low on 21 January during a selloff in AI-related stocks. On 30 January Bosch was also described as under pressure in a difficult economic environment. Deutsche Bank posted its biggest annual profit in nearly two decades, while its offices in Frankfurt and Berlin were searched in a money laundering investigation.
The second theme was domestic economic policy. The SPD presented a plan to raise levies on large inheritances, and the proposal drew criticism that it would harm family-owned businesses and middle-class assets. Coalition politicians pushed for a higher tobacco tax to fund health care, with an agreement expected by June. Reports said the German economy had returned to growth after two to three years of contraction, while business associations warned of a record number of corporate bankruptcies. Rents reached a record high.
On trade, Chancellor Friedrich Merz said EU and Indian negotiators could reach a free trade deal by February, and a report said it would exclude agricultural products. Germany and France said they would not be blackmailed by US tariff threats, and their finance ministers urged the EU to develop an anti-coercion response. German industry associations warned that new US tariffs would significantly harm growth, and a report showed German investment in the US nearly halved in the first year of Donald Trump's return to office. A Chinese company was set to become the largest shareholder in Puma, pending regulatory approval. Germany opened a 3 billion euro electric vehicle support scheme to Chinese automakers. Volkswagen fell to third place in China's car sales behind Geely Auto, and Porsche sales dropped sharply on weak demand there.
In energy and transport, Berlin authorities offered a one-million-euro reward for information on those responsible for a major power outage in the capital. Lufthansa cancelled night flights to Israel and avoided Iranian and Iraqi airspace. Azerbaijan started gas supplies to Germany and Austria via a new pipeline route.
by WorldBrief & Maksim Micheliov | AI-generated summary
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