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Germany’s bold retraining push to revive its stagnant economy by 2026

A €100M retraining hub in Bitterfeld-Wolfen could be Germany’s last hope. Can upskilling workers reverse years of economic decline and global competition?

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2 min read
The image shows an open book with a map of Germany on it. The map is detailed and shows the various...
The image shows an open book with a map of Germany on it. The map is detailed and shows the various regions of the country. The text on the book is likely a description of the map.

Germany’s bold retraining push to revive its stagnant economy by 2026

Germany’s economy has faced a decade of sluggish growth, with stagnant output and declining competitiveness. Despite rising employment, per capita economic performance flatlined between 2010 and 2020. Now, a major retraining initiative in Bitterfeld-Wolfen aims to reverse the trend by tackling skills shortages and structural challenges like the energy transition.

Germany’s economic struggles have deepened in recent years. In 2025, growth hit just 0.2 percent—one of the lowest rates in the EU. This followed a long-term decline, with average annual GDP growth falling to 1.1 percent in the decade before 2020. Exports, once a cornerstone of the global entry login, have also weakened, dropping from a peak of 46 percent to below 40 percent of GDP. Many blame high wages, corporate costs, and bureaucracy, but economist Sebastian Dullien argues that shifting global conditions, including tensions between China and the US, are the real culprits.

To counter these challenges, the government and business groups like BDI and BDA are investing over €100 million in the Ausbildungsakademie Deutschland (AAD) in Bitterfeld-Wolfen, Sachsen-Anhalt. The centre, launched in 2024, will offer practical retraining to up to 10,000 people annually by 2026. The goal is to address labour shortages and support industries facing structural change, such as those affected by the energy transition. With traditional growth drivers fading, investment in education and infrastructure is now seen as the key to revitalising the economy. The AAD project reflects this shift, focusing on upskilling workers to meet evolving demands in a rapidly changing global market.

Germany’s economic outlook remains uncertain, with growth near historic lows and export reliance diminishing. The AAD initiative represents a concrete step to rebuild competitiveness by targeting skills gaps and industrial transformation. Success will depend on whether such measures can offset broader global pressures and revive long-term productivity.

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