The Federation of German Industries (BDI) said that given the uncertain picture for German industry amid persistent obstacles, industrial production is likely to continue to decline in 2024, while exports are projected to stagnate.
According to official data, in 2023 as a whole, production in industry was 1.5% lower in calendar-adjusted terms than in the previous year, with industrial production down 0.7%, production in energy production down 15.0% and production in construction down 0.8% year on year. Overall, production remained relatively stable until May 2023. However, with the exception of a period of stagnation in August 2023, it then declined consistently month on month in the subsequent months.
"German industry continues to feel the shocks associated with costs and demand, extremely high energy prices and high inflation," the BDI said, adding that industrial production is likely to decline by 1.5% this year, while exports will remain unchanged after falling by 1.5% in 2023.
Meanwhile, the Mechanical Engineering Industry Association (VDMA) said the trough of a slump in foreign orders had been reached, but production is expected to decline by 4% this year.