The German economy has been stuck in a growth crisis for a long time. The outlook continues to darken.
The German Chamber of Commerce and Industry is very concerned about the economic situation in Germany. “The mood in a growing number of companies in all regions of our country is dramatically bad,” said DIHK President Peter Adrian to the German Press Agency before a new economic forecast from leading economic research institutes.
According to Adrian, the economic conditions in Germany are making entrepreneurial activities increasingly unattractive: “Production relocations and business closures are increasing, investments are failing. We are experiencing standstill instead of growth.”
The leading economic research institutes are expected to lower their economic forecast on Wednesday. As was previously known, gross domestic product is expected to fall by 0.1 percent this year. In the spring, the institutes had expected a minimal increase of 0.1 percent. Growth of 0.8 percent is expected for 2025 – instead of an increase of 1.4 percent as in the spring.
Many companies are angry, unsettled or frustrated, says Adrian. “The Chambers of Industry and Commerce are currently reflecting this very strongly to us. We therefore need a joint effort for a good future. This includes giving up everything that slows down the economic commitment of companies and employees.” Politicians must put the economy back at the top of the priority list.
Adrian always complained about further requirements, regulations and costs. He spoke out in favor of noticeable immediate signals. The Energy Efficiency Act and the Building Energy Act – often referred to as the Heating Act – are unlikely to continue to exist in their current form. “Incentives for technological innovations instead of detailed regulations are the right way forward.” In addition, the federal and state governments would finally have to fully implement their pact to accelerate approval processes in the short term. An investment-friendly corporate tax reform is overdue.
