German economy faces 3rd year of recession in ’25 – DIHK

Germany is set to face its third consecutive year of recession in 2025, according to the latest economic survey by the German Chamber of Commerce and Industry (DIHK), which polled around 23,000 companies.

DIHK expects gross domestic product to shrink by 0.5 per cent this year, marking the longest economic downturn in Germany’s post-war history.

DIHK Managing Director Helena Melnikov warned of a deepening structural crisis, with 60 per cent of companies citing unfavourable economic policy as their biggest business risk.

Investment and export expectations remain weak, with only 22 per cent of companies planning more investment and 28 per cent expecting exports to decline. The survey also revealed that 22 per cent of firms anticipate workforce reductions, particularly in the manufacturing sector.

Melnikov called for urgent political reforms, including reduced bureaucracy, affordable energy, and a competitive tax environment, to revive growth and prevent further deindustrialisation.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama