German economy returns to growth, so why is the country still worried?

Is Germany's economy back on the up? The answer to that question depends on your perspective. At the 2026 Mechanical Engineering Summit in Berlin this week, the mood was sullen. "A year ago, I said here: We are angry. Today I must say: We are stunned," Bertram Kawlath, president of the Mechanical Engineering Industry Association (VDMA) , said in his opening remarks on Tuesday. The mechanical and plant engineering sector was the backbone of German industry for decades. It once employed more than a million people; now 15,000 positions are being cut every month. Production has shrunk about 20% since 2018.