German Industry Faces Production Decline and Reform Calls

The German industry is bracing for a challenging 2024, forecasting a 3% decline in production. Key sectors like automotive, machinery, and electronics are significantly affected, facing declines of 6.9%, 8.5%, and 10.7% respectively. This marks the third consecutive year of contraction, highlighting ongoing industrial recession pressures.

As Germany struggles, the attractiveness of its business environment is waning. The broader European industrial sector is also in recession, with declining exports and minimal GDP growth of just 0.1% in the third quarter. Despite global trade expanding by 2%, German exports are expected to fall by 0.5% in 2024, with further reduced expectations for 2025.

In light of these challenges, the Federation of German Industries (BDI) is urging the formation of a new, decisive government capable of enacting reforms to revitalize the business landscape. This call to action aims to reverse the downward trend and restore Germany's competitiveness in the global market.