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German Exporters Project 2.7% Decline in Sales for 2025, Trade Body Warns

by Mich M.
01/21/2025
in Economic Indicators

BERLIN (Reuters) – A large majority of German businesses engaged in international trade expect a decline in sales for 2025, according to a report from the BGA trade association. The association forecasts a 2.7% decrease in turnover compared to 2024.

The outlook for the coming year is challenging, with many small and medium-sized enterprises expressing a loss of confidence in political leadership. In addition to these concerns, the potential impact of tariffs proposed by the U.S. government remains a significant risk for the German economy. These tariffs are seen as measures intended to boost U.S. manufacturing, though the specific actions from the U.S. administration are still awaited.

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The BGA survey highlighted a variety of issues within the German export sector, including a slowdown in orders, reduced investment, and an increase in insolvencies. It also noted that 30% of companies in the sector are planning job cuts. For 2025, the wholesale trade is expected to experience stagnation, with a 0.5% decline in nominal terms.

The upcoming German elections, set for February 23, are expected to focus on strategies to revive economic growth. The BGA stressed the need for investment in infrastructure, improvements in business conditions, and reductions in energy and labor costs to address the sector’s ongoing challenges.

Despite these difficulties, the trade body remains concerned about the longer-term effects of the global economic environment on the country’s foreign trade sector, which had traditionally been a reliable pillar of the economy.

Discover the latest in supply chain logistics news on The Supply Chain Report. Free international trade tools are available at ADAMftd.com.

#GermanExports #EconomicDecline #GlobalTradeChallenges #ExportForecast #TariffsImpact


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