Businesses uncertain about impending adjustments
Germany's Business Conditions Remain Fraught as DIHK Survey Indicates Recession Risks
Berlin - Despite a change in government, the outlook for German companies remains bleak, according to the latest business climate survey by the German Chamber of Industry and Commerce (DIHK). Over 23,000 companies from various sectors participated in the survey conducted at the end of March and beginning of April.
DIHK President Eric Schweitzer expressed his concerns on Tuesday in Berlin, stating, "We still do not see the breakthrough we urgently need." The survey provided no signs of sustainable growth across all indicators.
The international operations of German companies are particularly pessimistic, with only 19% anticipating economic improvements against 33% forecasting deterioration, according to a separate survey by the Association of German Chambers of Commerce and Industry (AHK) in Spring 2025 [1][3]. The uncertainty and potential disruptions in global trade have been exacerbated by the US trade policy [1].
Germany itself may face a third consecutive year of economic contraction, with a projected GDP shrinkage of 0.3% in 2025 [5]. The overall business climate continues to be subdued, with the DIHK sentiment index at 94.9, below the optimistic threshold [2].
The economic recovery remains out of sight, partly due to ongoing trade tensions, despite a promising start to the year [5]. These conditions raise concerns about another recession year, marking an unprecedented trend in Germany's post-war history [5].
Although the latest DIHK surveys do not directly address 2022, they were shaped by economic challenges stemming from soaring commodity and energy prices triggered by the Russia-Ukraine war, causing high inflation rates and affecting consumer sentiment [4]. These circumstances paved the way for the ongoing economic contraction.
In conclusion, the latest DIHK survey findings underscore the ongoing economic struggles faced by German companies both at home and abroad. The uncertain economic landscape is likely to remain a concern for businesses in the coming months.
German companies are grappling with a challenging business environment, as indicated by the DIHK survey, with finance and business sectors expressing concerns about potential economic contractions in Germany. Furthermore, the international operations of German companies exhibit a pessimistic outlook, with only 19% anticipating improvements against 33% predicting deterioration.
