A large majority of German companies does not expect their economic situation to improve next year, according to a survey by a leading think tank published on Monday.
The ifo Institute’s survey showed that some 56% of firms believe their prospects will remain the same, while 31% expect their situation to get worse.
Only 12.6% said they expected their outlook to improve next year.
“Companies see no signs of an economic upturn at the moment,” said Klaus Wohlrabe, who led the survey.
“Given that the economy was already doing badly in 2024, these figures are worrying,” he added.
No industry was truly expecting improvement for 2025, according to Wohlrabe.
Expectations are particularly low in the construction sector, which is suffering from a lack of orders.
Half of the companies in the industry fear their situation will deteriorate, according to the survey.
In retail, some 42% of companies expect their business to be worse in 2025.
The outlook for the manufacturing sector is also bleak, according to the institute, with only 15.7% of firms expecting improvement, while 31.8% are bracing for a downturn. Some 52.6% said they are expecting no change.
