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More than half of Germany’s medium-sized companies expect an economic downturn next year, according to a survey by the BVMW business association.<\/p>\n
Christoph Ahlhaus, the association’s chief executive, said on Saturday that “superficial reforms are no longer enough to get Germany back on track.”<\/p>\n
He said businesses expect the federal government to finally deliver on long-promised structural reforms and concrete relief measures in areas such as bureaucracy, the labour market, taxation and energy costs.<\/p>\n
According to the survey, 54% of companies expect an economic slowdown, while only 22% anticipate an upswing. In addition, 42% of respondents said they plan to scale back investment in 2026, the association said.<\/p>\n
Medium-sized companies, known as the Mittelstand, form the backbone of Germany’s economy and account for a large share of employment and investment.<\/p>\n
The German economy contracted in 2023 and 2024, while growth is forecast to be minimal this year and no meaningful recovery is expected in 2026.<\/p>\n
The BVMW surveyed more than 1,000 Mittelstand companies in an online poll conducted between December 18 and 23.<\/p>\n<\/p><\/div>\n