The German economy is only slowly coming out of the crisis. The mood is brightening slightly, but remains gloomy, said Helena Melnikov, managing director of the German Chamber of Commerce and Industry, in Berlin. It only goes up in triple steps. The breadth of companies is struggling with high location costs, weak domestic demand and geopolitical uncertainties such as US customs policy.
At the beginning of the year there was only a slight improvement in the business situation, as a DIHK survey of around 26,000 companies showed. Export expectations gave some hope. 22 percent of companies expected exports to increase in the next twelve months, three percentage points more than in the fall.
Forecast raised
The DIHK raised its economic forecast slightly and, like the federal government, now expects growth of one percent for 2026. However, this is largely due to statistical and calendar effects. There are more working days this year because public holidays fall on weekends. Internationally, Germany has been left behind in terms of growth. In November, the DIHK expected growth of 0.7 percent for 2026. The government spending billions on infrastructure and defense had a supporting effect.
Companies invest little
According to the survey, companies remain very cautious about their domestic investment intentions. The companies primarily invest in replacement needs, such as replacing machines, said Melnikov. However, there is a low level of investment in innovations.
The DIHK stated that the bad mood had long since reached the labor market. According to the survey, 12 percent of companies plan to expand their workforce, while 23 percent expect a decrease.
