Finance
Pessimism Prevails Among German Firms for 2025, Survey Shows
Published by Global Banking & Finance Review®
Posted on December 16, 2024
1 min readLast updated: January 27, 2026
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Quick Summary
A survey by the Ifo institute reveals that only 12.6% of German firms expect better business conditions in 2025, highlighting economic challenges.
Survey Reveals Growing Pessimism Among German Firms for 2025
(Reuters) - German companies feel pessimistic about the new year, with only 12.6% expecting business conditions to improve in 2025, according to a poll by the Ifo institute of some 8,000 firms published on Monday.
"No sector is really optimistic about 2025. A lot of work awaits the new German government," says Klaus Wohlrabe, head of surveys at Ifo. "In view of the fact that the economy has already performed poorly in 2024, these figures are worrying," Wohlrabe added.
The construction industry was most pessimistic, with less than 5% of companies expecting an upturn next year, while 15.7% of companies in the country's large manufacturing sector expected business conditions to improve next year.
In the chemicals industry, the nation's third-largest sector, 18.2% of businesses expected an upswing in 2025.
Beset with weak global demand, high costs and an industrial slowdown, Europe's biggest economy is on track to shrink for a second year running in 2024, with economic institutes forecasting another difficult year in 2025.
(Reporting by Rene Wagner and Andrey Sychev, editing by Rachel More)
Key Takeaways
- •Only 12.6% of German firms expect better conditions in 2025.
- •Construction industry is the most pessimistic sector.
- •Manufacturing sector sees 15.7% expecting improvement.
- •Chemicals industry shows 18.2% optimism for 2025.
- •Germany's economy faces a second year of contraction.
Frequently Asked Questions about Pessimism prevails among German firms for 2025, survey shows
1What is the main topic?
The article discusses the pessimistic outlook of German firms for business conditions in 2025 based on an Ifo institute survey.
2What sectors are most pessimistic?
The construction industry is the most pessimistic, with less than 5% expecting improvement, followed by the manufacturing sector.
3What challenges does the German economy face?
Germany faces weak global demand, high costs, and an industrial slowdown, contributing to a projected economic contraction.
