German Businesses Forecast Economic Challenges in 2025

A survey by the Ifo Institute reveals widespread pessimism across industries, with construction and retail sectors particularly concerned.

Only 12.6% of German businesses expect improved economic conditions in 2025, according to a survey of 8,000 firms by the Ifo Institute.
Over 31% of companies anticipate a worsening business environment, while 56% expect conditions to remain unchanged.
The construction sector is the most pessimistic, with half of firms predicting a decline in business activity next year.
Retailers are also concerned, with 42% expecting their business performance to deteriorate in 2025.
Germany's economy has already faced significant challenges in 2024, including weak global demand, high costs, and industrial slowdowns, with experts predicting continued difficulties next year.