German Chamber of Commerce and Industry expects GDP to contract by 0.3% this year

The German Chamber of Commerce and Industry (DIHK) expects the country’s economy to contract by 0.3% this year, marking the third consecutive year of recession. Yet, this projection is more optimistic compared to the forecast of a 0.5% decline in GDP released in February.

Germany's economic rebound in the first quarter of 2025 exceeded analysts' expectations as exports and industrial production rose ahead of the imposition of US import tariffs. However, DIHK projects exports to fall by 2.5% this year. 

The chamber's poll of 23,000 German companies showed that 29% of businesses see exports decreasing over the next 12 months, with only 19% expecting an increase. 

Business sentiment in Germany remains pessimistic, Reuters notes. Helena Melnikov, DIHK managing director, says companies are waiting for economic incentives from the authorities. Reviving GDP growth will be the major task for the new government, the news agency adds.

59% of companies surveyed by DIHK consider economic policy conditions to be the main risk for business. About one third of respondents reported the intention to trim investments.