German Economy Faces Third Year of Stagnation, DIHK Warns

Despite government optimism, the DIHK predicts no economic growth in 2025, citing structural challenges and declining business sentiment.

The Deutsche Industrie- und Handelskammer (DIHK) forecasts zero economic growth for Germany in 2025, marking the third consecutive year without real GDP increase.
A survey of 25,000 companies reveals widespread pessimism, with 31% expecting worse business conditions in the coming months.
Key challenges include high bureaucracy, elevated taxes, and expensive energy, which hinder Germany's competitiveness and investment levels.
The automotive industry is particularly hard-hit, with Volkswagen planning to close at least three plants, threatening thousands of jobs.
Consumer sentiment shows slight improvement, but remains low, as businesses plan price hikes amid ongoing economic uncertainty.