The German economy has been stuck in a growth crisis for some time now. The outlook continues to bleak.
The German Chamber of Industry and Commerce 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 ahead of a new economic forecast from leading economic research institutes. “The economic conditions in Germany are making entrepreneurial activities increasingly unattractive. Production relocations and business closures are increasing, investments are not being made. We are experiencing stagnation instead of growth.”
The leading economic research institutes are expected to lower their economic forecast on Wednesday. As was announced in advance, 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, uncertain or frustrated, says Adrian. “The Chambers of Industry and Commerce are currently reflecting this very clearly. 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 complained about ever more requirements, regulations and costs. He spoke out in favor of tangible immediate signals. The Energy Efficiency Act and the Building Energy Act – often referred to as the Heating Act – should not continue in their current form. “Incentives for technological innovations instead of detailed regulations are the right way.” In addition, the federal and state governments must finally implement their pact to speed up approval procedures in full in the short term. An investment-friendly corporate tax reform is long overdue.
Source: Stern
