Federation of German Industries cuts 2025 growth forecast to -0.3%

"Industrial production remains significantly below the pre-crisis level of 2019, and capacity utilisation is only 77 per cent," a BDI statement said.

The country still has a long way to go to get out of recession and there is scope for an upturn next year if the government resolutely pursues the path it has chosen, BDI head Peter Leibinger was cited as saying by media reports from the country.

Though the government has already taken initiatives like the 'investment booster' and tax and energy cost relief schemes, further measures and structural reforms are necessary to strengthen the economy and its competitiveness in the long term, he noted.

Energy costs must be permanently reduced to a competitive level, and there is potential for savings in the energy transition, he added.

ALCHEMPro News Desk (DS)