Forecast: After two years of recession, the German economy is facing another year of crisis in 2025. The DIHK expects gross domestic product to shrink by 0.5 per cent for the year as a whole.
- There are no signs of an improvement in the economic situation at the start of 2025.
- Companies' business expectations remain almost unchanged at the start of the year.
- For the first time since the survey of business risks as part of the DIHK economic survey, economic policy conditions are the most frequently cited business risk.
- Industry's export expectations have improved slightly, but remain negative on balance despite a reasonably robust global economy.
- Companies remain very hesitant about their investment plans in Germany.
- Only twelve per cent of companies are planning for an increase in employment in the coming months, while almost one in four (22 per cent) are expecting fewer employees.
- A tense business situation and negative business expectations have led to a slight increase in the proportion of companies reporting financing difficulties.