German economy
Industry under pressure: BDI expects a large decline in production
Production in German industry is falling significantly. The BDI warns: Key German industries in particular are struggling with severe declines.
In view of the economic downturn, German industry is expecting a sharp decline in production this year. The Federation of German Industries (BDI) expects a decline of three percent, marking the third year in a row of declining figures. “A recovery in 2025 is not in sight,” said Managing Director Tanja Gönner.
What is particularly problematic is that leading German sectors are struggling with severe declines, said Gönner. As of September, vehicle construction recorded production losses of minus 6.9 percent compared to the same period last year, in mechanical engineering it was minus 8.5 percent and in the electrical industry it was minus 10.7 percent.
“Germany is becoming less attractive as a location”
“The industrial recession is also continuing in the European Union,” wrote the BDI in its “Industrial Report 2024”. A production decline of three percent is also expected this year. “Germany, but also the EU, are becoming less attractive as a location.”
The association expects German exports to decline by 0.5 percent this year, while global trade in goods will increase by two percent. Imports are likely to develop correspondingly weakly. Export expectations for 2025 have also fallen.
The BDI once again called for impetus from politicians: In order to generate more growth again and make Germany attractive as a location, “we urgently need a new and effective government that implements the necessary reforms with determination and courage.”
The German economy only grew minimally in the third quarter. The gross domestic product increased by 0.1 percent compared to the previous quarter, as the Federal Statistical Office announced in a second estimate. The authority initially calculated growth of 0.2 percent based on preliminary data.
dpa
Source: Stern
