Effects of Public Investment on Companies in Germany – Results of the IW Business Survey

Public investment also stimulates private-sector activity, as the current IW business survey shows for Germany. Public-sector investment spending particularly stimulates demand, but also helps companies to cope with the upcoming transformation processes and improves production conditions (due to better infrastructure, for instance). Around half of the firms surveyed expect state investment to have these at least slightly positive effects. A third of corporate respondents also note an increase in their own investment activity as a result of improvements to the business environment brought about by public investment.