Germany is emerging as Europe’s most compelling growth story heading into 2026, with analysts forecasting a return to steady expansion and international firms eyeing new opportunities across the continent’s largest economy.
Global employment specialist Agility EOR is urging international companies to take a fresh look at Germany, as forecasts point to 1.3% GDP growth next year, underpinned by €500 billion in government infrastructure investment and more than €630 billion in private-sector funding. The scale of this combined spending — over €1 trillion — is set to inject new momentum into sectors ranging from technology and manufacturing to energy and digital infrastructure.
“Germany’s fundamentals make it a standout destination for international expansion,” said Scott Winter, HR Executive at Agility EOR. “The combination of a highly skilled, bilingual workforce, a central European location, and the widespread adoption of hybrid work creates an ideal environment for global employers seeking growth.”
The consultancy has positioned itself to meet rising demand from companies entering the German market, having secured an Arbeitnehmerüberlassung (AÜG) licence — a crucial regulatory requirement that allows Agility EOR to support clients with compliant, flexible workforce strategies as they expand overseas.
Recent data suggests that workplace flexibility remains a decisive factor for talent retention in Germany. According to a survey by the ifo Institute, German employees work remotely an average of 1.6 days per week, notably higher than the global average of 1.2 days.
Meanwhile, research by Continental revealed that nearly half of German employees (47%) would consider quitting if their ability to work remotely were significantly curtailed. These findings underline how hybrid work has evolved from a temporary pandemic measure into a core expectation of the modern German workforce.
“Companies that fail to offer flexibility risk losing top talent to those with the foresight to adapt,” Winter added. “Agility EOR helps organisations enter and scale in Germany quickly and compliantly, giving them access to exceptional talent while ensuring alignment with local labour regulations.”
With the AÜG licence in place, Agility EOR is now equipped to act as a trusted partner for global employers seeking to build and manage distributed teams across Europe, ensuring every aspect of employment — from contracts to compliance — aligns with German labour law.
As confidence returns to the Eurozone, and Germany positions itself as a hub for innovation and sustainable growth, businesses ready to act stand to benefit most. For many global employers, 2026 could mark the start of a new chapter in European expansion.