As Sweden’s largest trading partner and one of Europe’s leading industrial economies, Germany continues to offer significant opportunities for Swedish companies. Strong industrial capabilities, advanced infrastructure, and long-standing trade ties make Germany a strategically important market across multiple sectors.
At the same time, companies report a more demanding operating environment. Regulatory complexity, labour market constraints, high corporate taxation, and slow digitalisation continue to affect competitiveness and operational efficiency. Increased geopolitical uncertainty and weaker industrial demand have also contributed to a more cautious market climate.
Cooperation between Sweden and Germany remains strong within sectors such as manufacturing, energy, electrification, infrastructure, defence, mobility, and digital technologies. Germany’s investments in industrial transformation, infrastructure modernisation, energy transition, and defence continue to create opportunities for Swedish companies offering sustainable and innovative solutions.
Competitiveness in Germany is linked to strong sales competence, cost efficiency, local partnerships, and long-term commitment. The Swedish brand continues to be associated with innovation, quality, sustainability, and reliability.
Germany is widely regarded as a stable and transparent market with strong institutions and advanced industrial networks. However, companies also point to increasing competition, skills shortages, and administrative complexity as ongoing challenges.
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ABOUT THE SURVEY
To assess the opportunities and challenges faced by Swedish companies in international markets, Team Sweden conducts annual Business Climate Surveys across multiple markets worldwide. This year’s survey in Germany includes responses from 96 Swedish companies operating in the country. Industrial companies represent a significant share of respondents, while professional services, consumer goods, and technology-related companies also make up a considerable share. The majority of respondents have been active in Germany for more than five years.
We would like to extend our sincere appreciation to all participating companies and respondents who contributed to this report. Team Sweden in Germany hopes that the findings will serve as a basis for continued dialogue with German authorities and other relevant stakeholders.
