Germany’s firms gloomy on outlook
Berlin (dpa) — More than half of Germany’s medium-sized companies expect an economic downturn next year, according to a survey by the BVMW business association.
Christoph Ahlhaus, the association’s chief executive, said on Saturday that “superficial reforms are no longer enough to get Germany back on track.”
He said businesses expect the federal government to finally deliver on long-promised structural reforms and concrete relief measures in areas such as bureaucracy, the labour market, taxation and energy costs.
According to the survey, 54% of companies expect an economic slowdown, while only 22% anticipate an upswing. In addition, 42% of respondents said they plan to scale back investment in 2026, the association said.
Medium-sized companies, known as the Mittelstand, form the backbone of Germany’s economy and account for a large share of employment and investment.
The German economy contracted in 2023 and 2024, while growth is forecast to be minimal this year and no meaningful recovery is expected in 2026.
The BVMW surveyed more than 1,000 Mittelstand companies in an online poll conducted between December 18 and 23.
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Notes from APS Radio News
The International Monetary Fund publishes household debt to GDP by country.
Whereas the United States has a household debt to GDP ratio of 69.35%, Germany’s household debt to GDP ratio is 49.93%.
The website called “Trading Economics” publishes Germany’s rate of inflation.
According to that website, compared to December 2024, this month this years shows a rate of inflation somewhat lower.
