After stagnation this year, the German Chamber of Commerce and Industry (DIHK) expects only zero growth for the country's economy in the coming year. This opinion was expressed by DIHK CEO Martin Vansleben at the presentation of a new economic survey in Berlin.
According to him, the data from the DIHK economic survey conducted in the fall of 2024, in which about 25,000 companies from all industries and regions of Germany took part, do not give grounds for optimism for 2025. “On the contrary, in some places the feedback from the companies gives rise to fears that the situation could become even worse. For 2024, we reduce our forecast to at best a red zero. We also expect zero growth next year. This will be the third year in a row without real GDP growth, Vansleben said.
He emphasized that it is not just an economic crisis, but a lasting structural crisis in Germany. “In addition to high energy and personnel costs, growing bureaucracy and tax burdens are geopolitical uncertainty and a collapse in demand at home and abroad,” explained DIHK's executive director. According to the survey, only 26% of companies rate their current business condition as “good”. The balance of positive and negative assessments of the situation decreased to one point after five points at the beginning of the summer.
The share of companies with negative business expectations increased to 31% from 26% in the previous survey. The situation in the industry is worst. Signs of deindustrialization are becoming more apparent, Wansleben said. According to the DIHK, the automotive industry is experiencing a particularly sharp decline.
The German economy is going through a serious crisis. Earlier, leading economic institutions in Germany revised down their forecast for the country's economic growth this year. According to them, Germany's GDP will decrease by 0.1%. German GDP in the second quarter of this year, taking into account price, seasonal and calendar adjustments, is down 0.1% from the first quarter of 2024. The International Monetary Fund previously lowered its forecast for Germany's economic growth this year by 0.3 percentage points to 0.2%.