German business associations have expressed concerns about worsening economic conditions, with many predicting further challenges in 2025, according to a survey released on Friday by the German Economic Institute (IW)
“The German economy won’t get off the ground in 2025 either,” said IW Director Michael Huether in a report by Reuters.
German business associations gave a pessimistic outlook about the economy compared to a year ago. According to a recent survey by the employer-oriented German Economic Institute (IW), 31 out of 49 associations believe the current situation has deteriorated further since 2023.
“High costs for energy, labour, and materials, in addition to excessive bureaucracy, are weighing on companies and making it difficult for them to keep up with the international competition”, IW commented.
There are likely to be fewer jobs in the industry in particular, for example, in the iron and steel, mechanical engineering, and construction sectors, IW added.
IW warned about the global uncertainty paired with domestic political issues hampering exports and Investments, causing these negative sentiments to severely impact the labour market, as surveys foresee an impact on the labour market.