Germany’s Federation of German Industries (BDI) warned on Monday that the country’s industrial production is likely to experience another decline this year, with exports expected to stagnate.
This comes as the industry continues to grapple with persistent economic challenges as reported by Reuters.
BDI President Siegfried Russwurm, speaking at Hannover Messe, one of the world’s largest trade fairs, stated that the German industry has yet to recover from cost and demand shocks, periods of extremely high energy prices, and inflation.
The BDI predicts a 1.5 per cent decrease in production in 2024, with exports remaining flat following a 1.5 per cent drop in 2023.
Russwurm cautioned that despite signs of a moderate recovery, the overall production figures have been on a concerning downward trend for years.
In a similar vein, the VDMA Engineering Association confirmed that while the low point of a slump in foreign orders has been reached, production is still expected to fall this year, aligning with its previous forecast of a 4 per cent drop.
VDMA President Karl Haeusgen, in his speech at the Hanover Messe, emphasised that the negative factors impacting the industry are still evident.
These forecasts paint an uncertain picture for the future of German industry, highlighting the need for strategic planning and resilience in the face of ongoing economic headwinds.
