The Federal Association of German Industry (BDI) stated this Tuesday, 2, that Germany is going through the deepest crisis in history since the founding of the Federal Republic and predicted a 2% drop in industrial production for this year.
“The economic situation is in free fall, but the Government is not reacting with sufficient determination”, criticized the president of BDI, Peter Leibinger, who pointed out that German industry finds itself facing a “dramatic minimum point” at the end of 2025.
According to the BDI, industrial production will fall in 2025 for the fourth consecutive year, by 2%, compared to the 0.5% originally forecast, which implies that this is not a “cyclical phase”, but a “structural contraction”.
Since the peak reached in 2018, industrial production has experienced nine consecutive quarters of contraction and after the recovery recorded at the beginning of 2025, in the third quarter of this year it fell again by 0.9% in relation to the previous three months and by 1.2% year-on-year.
BDI therefore called for a change in economic policy in which competitiveness and growth are prioritized, as each month that passes without structural reforms causes the loss of more jobs and reduces the State’s margins for future action.
“The Government must prioritize investments over consumption spending. The extraordinary fund must be used transparently for additional investments”, complained the organization, which also demanded the elimination of bureaucratic obstacles, as well as tax relief for companies.