DIHK CEO Helena Melnikov elaborates on the challenging state of the German economy and the necessary steps to stimulate a turnaround.
10.04.2025 - "The state of the German economy is serious. The research institutes predict only minimal growth. The sentiment among companies remains dire. Unfortunately, at DIHK we anticipate a third consecutive recession year. The erratic tariff announcements from US president Trump, with their adverse effects on global trade, pose additional burdens for the export-oriented German economy. This is why it's vital for the future federal government to initiate a reversal of trends.
The coalition agreement offers a good starting point, but this alone is not sufficient. Now, the government must focus on addressing the primary challenges in economic policy. The state needs to create a positive framework for businesses instead of binding resources with senseless regulations. Companies also urgently need relief in energy costs and taxation. The proposed start of a corporate tax reform in 2028 is far too late – especially since the 'Soli', which mainly strains businesses, is set to remain in place. This year will be decisive for whether Germany and Europe can achieve a competitive turnaround or continue to lag behind. Sustainable recovery requires profound reforms."
- Relevant in topic:
- Economic and Fiscal Policy
- Key areas:
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- Growth
- Economic Outlook
- Commerce
It has been translated with the assistance of AI.
No guarantee is made as to the accuracy or completeness of the translation.
Released 10.04.2025
Modified 16.02.2026
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Sven Ehling
Spokesperson | Visual Communication