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2026-02-17 17:41:49
[Germany's Economy Stagnates, DIHK Predicts Slight 1% Growth in 2026] ⑴ The German Chamber of Commerce and Industry (DIHK) released a forecast on Tuesday, predicting that Germany's GDP will grow by 1% in 2026, slightly higher than the previously expected 0.7%. However, the organization warned that this growth rate is still insufficient and structural reforms are needed for a sustainable recovery. ⑵ "Our competitors are more dynamic," noted the managing director of DIHK. Since 2019, the global economy has grown by 19%, the US economy by 15%, and Italy by 6%, while the German economy has barely expanded by 0.2%, essentially stagnating. ⑶ Despite a series of stimulus measures launched by the federal government, including a €500 billion infrastructure fund, business confidence has improved only slightly. The DIHK Business Climate Index rose slightly to 95.9 points, still far below the long-term average of 110. The survey showed that a quarter of businesses expect the economic situation to worsen further. ⑷ The main risks facing businesses include weak domestic demand (59%), rising labor costs (59%), economic policy uncertainty (58%), and high energy and raw material prices (48%). Investment sentiment remains weak, with only 23% of companies planning to increase investment, while 31% intend to cut it. The labor market is also under pressure, with 25% of companies expecting to lay off workers. (5) Export expectations are one of the few bright spots. Despite trade policy uncertainty, 22% of companies still expect exports to grow in the next 12 months, up 3 percentage points from the October survey. DIHK calls for accelerating reforms, reducing bureaucracy, and lowering labor and energy costs to help the German economy recover from stagnation.
