Around 13% of German companies believe their businesses will do better next year, a survey by the Ifo Institute found, published on Monday.
About a third (around 31%) expect a worsening of their economic situation in 2025, while the majority (around 56%) expect no change.
“The companies don’t see any signs of an economic upswing” said Klaus Wohlrabe, head of the Ifo surveys. “Given that the economy already did poorly in 2024, these numbers are worrying.”
“Really optimistic, no branch is looking at 2025. A lot of work awaits the new federal government” Wohlrabe said.
The construction industry is particularly pessimistic about 2025, with nearly every second company expecting a worsening of their situation. Less than 5% believe it will get better.
The mood is similar in retail, with around 42% of companies expecting a worsening of their business situation. Only 8% are optimistic that their situation will improve, while half (50%) expect no change.
In the industry, the outlook is also subdued, with around 16% of companies expecting a better business situation in the next year, 32% expecting a worsening, and the majority (53%) expecting no change.
In the service sector, the picture is slightly more optimistic, although uncertainties are still large. Around 12% of companies expect an improvement, 28% a worsening, and the majority (60%) expect no change.