ISTANBUL
The Federation of German Industries (BDI) on Monday lowered its 2025 economic growth forecast for Germany to minus 0.3% from minus 0.1% due to the impact of higher US tariffs on exports.
"Industrial production remains significantly below the pre-crisis level of 2019, and capacity utilization is only 77%," the BDI said in a statement.
It stated that a strong economy is also an important prerequisite for strengthening sovereignty and overall defense.
German industry is determined to assume responsibility for the security of the region, seeing the country's defense capability as a joint task of government and business, it noted.
"We still have a long way to go to get out of the recession," said BDI head Peter Leibinger. "Nevertheless, there is a real chance for an upturn next year if the federal government resolutely pursues the path it has chosen."
"The government has already sent important signals with its first initiatives, such as the 'investment booster' and tax and energy cost relief," he added.
He also said that further measures and, above all, structural reforms are necessary to strengthen the economy and its competitiveness in the long term.
Energy costs must be permanently reduced to a competitive level, and there is potential for savings in the energy transition, he said.,
A decisive reduction in bureaucracy with concrete reduction targets is necessary from both the EU and the German government, he urged.
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