Finance
German wholesalers warn fiscal stimulus cannot replace structural reforms
Published by Global Banking and Finance Review
Posted on January 13, 2026
German Wholesalers Warn Fiscal Stimulus Lacks Structural Reform
Challenges Facing the German Wholesale Sector
By Rene Wagner and Miranda Murray
Sales Growth Projections
BERLIN, Jan 13 (Reuters) - German wholesalers expect only slight sales growth this year after stagnating in 2025, in what the BGA trade association said was a sign that Europe's largest economy needed more than debt-financed stimulus to overcome structural problems.
Impact of Bureaucratic Burdens
The wholesale sector was set to grow by only 0.7% in 2026, said the BGA in its forecast published on Tuesday.
Long-term Economic Concerns
The sector, largely dominated by small and medium-sized enterprises, generates sales of around 1.7 trillion euros ($1.98 trillion) and provides roughly 1.9 million jobs.
"If the political framework conditions for SMEs don't finally change, we must expect even more insolvencies and even more job losses," BGA President Dirk Jandura said in a statement.
STRUCTURAL PROBLEMS NEED TO BE ADDRESSED
The lobby group found that more than half of the companies in the sector recorded sales declines last year, and more than a third expected further losses in 2026.
Consumer goods have been stabilising the entire wholesale sector for several years, masking the sharp declines on the industrial side as it experiences a lack of orders, layoffs and short-time work, said Jandura.
The wholesale industry's struggles as a whole reflect a structural problem in the entire German economy, he added.
Three-quarters of the companies found the bureaucratic burden overwhelming, in terms of time and money, while 40% felt they were at their limit in terms of energy costs and more than two-thirds were calling for a reduction in labour costs, said BGA.
The moderate growth forecasts for the coming years were based on government consumption and state spending, Jandura added.
"This is not genuine organic growth; it is debt-financed stimulus," he added, referring to a series of fiscal measures, including a 500-billion-euro infrastructure fund.
"While debt provides short-term impetus, it does not address structural weaknesses in the long term."
($1 = 0.8571 euros)
(Reporting by Rene Wagner and Miranda Murray, editing by Thomas Seythal and Alex Richardson)
Frequently Asked Questions about German wholesalers warn fiscal stimulus cannot replace structural reforms
1What is GDP?
Gross Domestic Product (GDP) is the total monetary value of all goods and services produced within a country's borders in a specific time period, serving as a broad measure of overall economic activity.
2What is debt financing?
Debt financing involves borrowing funds to be paid back with interest. It is commonly used by businesses to raise capital for various purposes, including expansion and operational costs.
3What are structural reforms?
Structural reforms are policy measures aimed at improving the economic framework of a country. They often involve changes in legislation, regulations, and institutions to enhance productivity and economic growth.
