German industry is expected to stagnate at best in 2026, BDI industry association says
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German industry is expected to stagnate at best in 2026, BDI industry association says
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- Germany has fallen every year since 2022, and a recovery is not expected for 2026.
- BDI cited higher energy costs, supply chain risks, and domestic structural weaknesses, including high labour, tax, bureaucracy, and energy costs, as factors eroding Germany's competitiveness.
- Warned that the manufacturing sector could contract for a fifth straight year if shipping disruptions persist, and urged the government to agree on a reform package by summer to spur growth and investment.
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