In 2026, Germany will develop into the most convincing growth engine in Europe. Analysts are predicting a return to steady expansion and international companies are exploring new opportunities in the continent’s largest economy.
Global employment specialist Agility EOR is urging international companies to take a fresh look at Germany as forecasts show GDP growth of 1.3% next year, supported by €500 billion in government infrastructure investment and more than €630 billion in private funding. The scale of this combined spending – over €1 trillion – will provide new impetus to sectors from technology and manufacturing to energy and digital infrastructure.
“Germany’s fundamentals make it an outstanding 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 widespread adoption of hybrid work creates an ideal environment for global employers seeking growth.”
The consultancy has positioned itself to meet increasing demand from companies entering the German market and has secured an Employee Leasing License (AÜG) – a key regulatory requirement that enables Agility EOR to support clients with compliant, flexible staffing strategies as they expand abroad.
Current data suggests that workplace flexibility remains a key factor in talent retention in Germany. According to a survey by the Ifo Institute, German employees work remotely an average of 1.6 days per week, well above the global average of 1.2 days.
Meanwhile, research from Continental found that almost half of German workers (47%) would consider quitting if their ability to work remotely were significantly restricted. These results underscore how hybrid working has evolved from a temporary pandemic measure into a central expectation of the modern German workplace.
“Companies that don’t offer flexibility risk losing top talent to those with the foresight to adapt,” Winter added. “Agility EOR helps companies establish and grow quickly and compliantly in Germany by giving them access to exceptional talent while ensuring compliance with local labor regulations.”
With the AÜG license, Agility EOR is now able to act as a trusted partner for global employers looking to build and manage distributed teams across Europe, ensuring that every aspect of employment – from contracts to compliance – complies with German labor law.
As confidence returns to the Eurozone and Germany positions itself as a hub for innovation and sustainable growth, companies willing to act will benefit most. For many global employers, 2026 could mark the beginning of a new chapter of European expansion.
