The President of the German Industrial Association (BDI) has published growth forecasts and reviews for the economy this year.
Accordingly, industrialists expect the gross domestic product (GDP) to drop by 0.1 percent this year, regardless of the additional customs tasks planned by US President Donald Trump.
BDI emphasizes that the euro region will grow by 1.1 percent this year and that the global economy will grow by 3.2 percent and said that Germany will stay behind the economic euro zone.
“The governments have postponed important reforms for years”
At a press conference, the BDI President Peter Leibinger said that Germany was in a deep economic crisis: “The situation is very serious. In particular, the growth of the industry has experienced a structural break.” he said.
Leibinger said that the current economic crisis in Germany is not only the result of the Covid-19 epidemic and the Russian-Ukrainian War, the problems are internal origin and the economy has been fighting since 2018, the “structural weakness”.
“The governments have postponed important reforms for years that delay investments and content with the current situation. Modern infrastructure has urgent needs for public investments for the transformation and durability of our economy.” he said.
Leibinger called for a clear strategy to reduce excessive bureaucracy in Germany, to invest in the infrastructure, to lower energy prices and to strengthen German innovation and research environment. As an industrial center. “Rated.
“New customs duties can hit Germany and the EU economy.”
Leibinger emphasized that it is important for Europe to strategically become more independent for Brussels, and said:
“We have to use our negotiating authority to effectively represent our economic interests and to establish alliances for more European integration and competitiveness.”
“We are about to change a radical change. The sound of the sound is increasingly hardened and new customs tariffs can meet the economy of Germany and the EU”. Warned.
According to BDI, the additional customs tariffs from Trump will suppress the EU's economic growth and the export -oriented German economy will reduce 0.1 percent instead of 0.1 percent in 2025.
German economy at the recession gate
On the other hand, the German economy shrank last year with increasing competition with China and structural problems with the curriculum of the economy in the second year.
The economy shrinks by 0.1 percent in the last quarter of last year, if it narrowed in the first quarter of 2025, becomes a technical recession that is defined as a two -quarter contraction.
In accordance with the estimate of the BDI, GDP in Germany is 0.1 percent this year, the German economy, the largest economy in Europe, since two consecutive years have not been growing three consecutive years in 1990.
Analysts stated that political uncertainty, increased competition from abroad, high energy costs and high interest rates are still suppressing the German economy and expecting little growth for 2025 in business.
In Germany, the three -party coalition government was distributed in November 2024 for disputes about the revival of the economy, in particular the budget. Early elections take place in the country on February 23.
In the meantime, Trump, who began his presidency in the United States on January 20, announced that it would significantly increase customs tasks in order to reduce the deficit of foreign trade and to support domestic production.
Analysts say that a more protective policy application for Trump's EU imports through customs tasks is not a good sign for German export management.
The United States is the largest buyer of German goods. Germany makes about 10 percent of exports to the United States.
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