Pessimism Prevails Among German Companies for 2025

A significant number of German companies are bracing for stagnation in 2025, according to the Ifo Institute's recent survey. The construction industry, retail, and manufacturing sectors are especially downcast, grappling with a lack of orders and an overall poor economic climate. The survey reveals that 56% of businesses anticipate no improvement, while 31% foresee a deterioration in their circumstances. Only a scant 12.6% hold an optimistic outlook for the year ahead.

The construction sector is notably suffering from a considerable lack of orders, which exacerbates the pessimism. In retail, 42% of respondents expect conditions to worsen, and 31.8% in manufacturing share this bleak sentiment. The overall economic situation in 2024 has been described as dismal, with many experts indicating that there are few signs of recovery on the horizon.

Furthermore, the forecast includes a troubling prediction of increased company bankruptcies in 2024, with experts projecting numbers close to the peak levels observed in 2009 and 2010. This trend threatens over 320,000 jobs, particularly impacting small firms, with 81.4% of insolvencies involving companies with ten or fewer employees. As special pandemic-related regulations expire, the economic environment is expected to become even more challenging.

In conclusion, the prevailing sentiment is one of caution and concern, as businesses prepare for a potentially difficult year ahead.