According to him, industrial production in Germany will probably fall for the fourth year in a row this year, and the situation in the industrial sector is dramatic.
Leibinger told the DPA agency that Germany is in a “free fall” and that the federal government is not reacting decisively enough. “Economically, Germany is in the deepest crisis since the founding of the Federal Republic, but the federal government is not taking adequate measures,” he said, criticizing the CDU/CSU and the SPD.
According to the latest BDI report, industrial production is expected to fall by two percent this year, which would mark the fourth consecutive year of production decline. “This is not a cyclical downturn, but a structural downturn,” Leibinger added.
However, the association is somewhat more optimistic when it comes to the European Union, where the industrial recession is considered over, and production growth of one percent is expected. Also, no further decline in German exports is predicted in 2025.
BDI’s analysis shows that the chemical industry, mechanical engineering and the steel industry are under pressure, while the situation in the construction sector is stabilizing. In the automotive industry, an increase in production and better utilized capacities are expected, but employment is still in a negative trend.
Leibinger points out that Germany urgently needs a fundamental change in economic policy with a focus on competitiveness and economic growth. “Every month without decisive structural reforms will cost Germany new jobs and prosperity,” he warned.
In particular, he emphasized the need for the federal government to prioritize investment over spending, using the infrastructure and climate protection fund transparently for additional investments, instead of diverting funds to social projects such as increasing pensions for parents.
(Vijesti.ba)
