More than half of Germany's medium-sized companies expect an economic downturn next year, according to a survey by the BVMW business association.
Christoph Ahlhaus, the association's chief executive, said on Saturday that "superficial reforms are no longer enough to get Germany back on track."
He said businesses expect the federal government to finally deliver on long-promised structural reforms and concrete relief measures in areas such as bureaucracy, the labour market, taxation and energy costs.
According to the survey, 54% of companies expect an economic slowdown, while only 22% anticipate an upswing. In addition, 42% of respondents said they plan to scale back investment in 2026, the association said.
Medium-sized companies, known as the Mittelstand, form the backbone of Germany's economy and account for a large share of employment and investment.
The German economy contracted in 2023 and 2024, while growth is forecast to be minimal this year and no meaningful recovery is expected in 2026.
The BVMW surveyed more than 1,000 Mittelstand companies in an online poll conducted between December 18 and 23.
LATEST POSTS
- 1
Over 60 local leaders push Netanyahu to halt haredi draft bill, warn of social rift - 2Audits of 6 European Busssiness Class Flights
- 3David Duchovny's new thriller has him stripping down at 65. But its chilling premise hits close to home.
- 4Josh Duhamel's secret to the good life at 53? Wolverine peptides, ditching Hollywood and having another baby.
- 5A Republican elected governor in California? It's not as far-fetched as it sounds.
- Quantum Computing’s Next Major Breakthroughs Could Come From Australia
- A Manual for Nations to Head out To
- 25 of the world’s best sandwiches
- 'We were genuinely astonished': This moss survived 9 months outside the International Space Station and could still grow on Earth
- Last supermoon of the year, the cold moon, seen across the U.S.: See the photos
- Israel and Lebanon's Hezbollah continue to trade attacks
- Experts who once backed 'shaken baby' science now fight to free imprisoned caregivers
- COGAT discovers motor oil hidden inside UN's humanitarian aid to Gaza in smuggling attempt
- If everyone on Earth sat in the ocean at once, how much would sea level rise?
