Germany's Poor Investment Record in Public Sector and Housing

Germany's public investment record is exceptionally poor, with low numbers that have resulted in a wearing down of public capital stock over decades. However, in the private realm, particularly in areas like capital equipment investment in manufacturing, there has been reasonably healthy investment. The housing sector also suffers from substantial underinvestment. Overall, Germany should focus on private investment, which is the overwhelming majority, to improve its investment story and address these challenges.