The Federation of German Industries (BDI) has warned that Germany’s economy is experiencing its “deepest crisis” since World War II, urging Chancellor Friedrich Merz’s government to take urgent action. Meanwhile, the OECD expects the German economy to return to growth soon. BDI President Peter Leibenger said Europe’s largest economy is “in free fall,” criticizing the German government for not responding decisively enough. The federation predicted that industrial output will decline in 2025 for the fourth consecutive year, stressing that this is “not a temporary downturn but a structural decline.” Germany’s economy is being hit by several factors: high energy costs burdening manufacturers, weak demand for exports in key markets, rising competition from China, and U.S. tariffs. After two years of recession, only modest growth is expected in 2025.
Sources - Agencies
