The German Chamber of Commerce and Industry (DIHK) still sees a long and difficult road out of the economic crisis. Only 15 percent of companies expect the economic situation to improve in the next twelve months, according to a new economic survey. Every fourth company expects a deterioration. “The mood has not improved since the government took office, but on the contrary has deteriorated slightly,” said DIHK General Manager Helena Melnikov in Berlin.
When he took office in May, Chancellor Friedrich Merz (CDU) had hoped for an early change in the mood in the economy – this obviously did not happen.
Only slight growth expected for 2026
The DIHK is more pessimistic in its economic expectations than the federal government and only expects mini-growth of 0.7 percent for 2026. After stagnation in the current year, the federal government and leading economic research institutes expect gross domestic product to increase by 1.3 percent next year.
Melnikov justified the worse forecast with weak prospects for exports and with companies holding back on investments. “What is not invested today will not be there tomorrow.” According to the survey of 23,000 companies from all sectors, only one in five companies plans to increase investments, and one in three wants to cut them. There is hardly any investment in equipment in new machines, systems or vehicles as well as hardly any investment in expanding capacities and innovating products. Melnikov spoke of an alarm signal.
Uncertainty continues
Companies have no planning security. Structural problems continue to slow down companies: According to the survey, 56 percent see high labor costs as one of their biggest business risks – this is a record high. Melnikov made it clear that, in her view, the federal government was on the right track. However, decided measures such as tax relief have not yet reached the companies. The government must increase the pace of relief.
Reduce electricity taxes for everyone
Melnikov named two measures that could bring a change in economic sentiment. On the one hand, this would mean reducing electricity taxes for everyone. The CDU, CSU and SPD had announced this in their coalition agreement, but in view of budgetary constraints it was only decided to perpetuate the electricity tax reduction for industry. This caused great disappointment, especially among medium-sized companies. “That still resonates to this day,” she said.
Electricity costs in Germany are three to four times higher than in the USA and twice as high as in France. The government’s planned industrial electricity price does not reflect the breadth of the economy.