Germany’s export sector anticipates a 2.7% decline in sales in 2025 compared to 2024, according to the BGA trade association. About 80% of foreign trade businesses foresee further declines amid falling orders, reduced investments, and rising insolvencies.
"The economic outlook for 2025 is grim," said BGA President Dirk Jandura, citing waning trust among small and medium enterprises in government policies. He stressed the need for significant policy shifts following the February 23 elections, calling for infrastructure investment, reduced bureaucracy, and lower energy and labor costs.
A BGA survey revealed that two-thirds of wholesalers reported declining sales in late 2024, with 40% expecting further drops in 2025. The association forecasts stagnation in wholesale trade in real terms and a nominal year-on-year decline of 0.5%.
Last week, the Federal Statistical Office (Destatis) published preliminary GDP estimates for 2024, which showed that the economy contracted by 0.2% compared to 2023, as cyclical and structural pressures stood in the way of better economic development. The difficult economic climate in 2024 was also reflected in foreign trade. Exports of goods and services were down 0.8%. A decline in exports of electrical equipment, machinery and motor vehicles was one factor contributing to this result. By contrast, price adjusted imports were up slightly by 0.2% on the previous year, primarily due to increased imports of services.