After two years of recession, the German economy is facing another year of crisis in 2025. This is according to the latest economic survey conducted by the German Chamber of Commerce and Industry (DIHK), in which around 23,000 companies from all sectors and regions in Germany took part.
"Over the next twelve months, significantly more companies continue to expect business to get worse than better", said DIHK Managing Director Helena Melnikov on the occasion of the publication of the results on 13 February in Berlin.
"We must be prepared for economic output in Germany to fall for the third time in a row in 2025. Based on the data, it is becoming increasingly clear how deep the structural crisis is: 60 percent of companies see the economic policy framework conditions as their greatest business risk – a negative record." According to Melnikov, it is therefore all the more urgent "that politicians use their realignment after the general election to finally provide clear impetus for growth again".
Based on the results, the DIHK expects gross domestic product to shrink by 0.5 percent for the year as a whole. "After 2023 and 2024, we are heading for the third consecutive year of recession in 2025 – the longest period of weakness in Germany's post-war history," warns the DIHK Managing Director. "This is a turning point and emphasises the acute need for action."
It is worrying that the usual indicators for an upturn are also failing to materialise – investments and exports in particular are falling. Reluctance is particularly high in industry: Only 22 percent of companies are planning more investment, while almost 40 percent are cutting back. "Instead of investing in innovation and growth, many companies are focussing solely on replacement investments – a clear alarm signal for the competitiveness of our location," warns Melnikov. "If this trend continues, Germany is at risk of further deindustrialisation."
