2025-12-25 12:00
publication
2025-12-25 12:00
More than a quarter of German companies expect their situation to deteriorate in 2026, and only 15 percent expects an improvement in the situation – according to a study by the Munich Institute of Economic Research (IFO).
According to the results of a survey conducted among German companies from various industries, 59 percent enterprises believe that there will be no major changes, either for the worse or for the better.
In industry, a key sector of the German economy, the percentage of optimistic companies is slightly higher than average and amounts to 18.2%.
Particularly pessimistic moods prevail in the construction industry, where 33.2 percent companies expect their situation to deteriorate, as well as in the retail sector, where 32.5% expect worse economic conditions. companies.
Businesses remain cautious. There are no signs of optimism anywhere, noted IFO director Klaus Wohlrabe in a commentary on the study.
Research institutes, including IFO, expect that the stimulus package introduced by the government will lead to the return of economic growth in Germany in 2026-2027.
The number of bankruptcies of German companies is the highest in a decade. Creditors lost EUR 57 billion
The German economy cannot recover for the third year in a row, resulting in a record wave of insolvencies. In 2025, the number of bankruptcies abroad reached the highest level in over a decade, affecting nearly 24,000 enterprises. The Creditreform report exposes the scale of the problem: exhausted financial reserves of companies, billions of losses for creditors and a growing risk for the labor market.
Overcoming the recession that has been ongoing in the country for two years is considered a priority for the coalition of Christian Democrats and Social Democrats. Germany complains about rising energy prices, falling demand, and new American tariffs. The government of Chancellor Friedrich Merz, who is struggling with poll results, is increasing spending on infrastructure and the military. The Christian Democrat leader intends this to be a development impulse for the economy. (PAP)
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