Germany’s Economic Forecast and Industrial Outlook
BERLIN, Jan 21 (Reuters) – Germany’s economy could grow by 1% in 2026 if new U.S. tariffs are avoided, the BDI industry association said on Wednesday, but warned the industrial outlook remains fragile.
BDI urged the government to put competitiveness, growth and jobs at the centre of policy as global uncertainty rises and fresh U.S. tariff threats add pressure on export-driven economies in Europe.
BDI President Peter Leibinger said Europe must respond to tariff threats with unity and confidence, arguing only a competitive and resilient EU can act from a position of strength.
INDUSTRY WILL REMAIN FRAGILE
Current Economic Growth Predictions
The BDI said industry would likely expand more slowly than the overall economy this year.
Challenges Facing the Industry
“Only if we now give top priority to strengthening competitiveness and growth can we stop the downward trend in industrial production,” Leibinger said.
Proposals for Improvement
He called for reforms with measurable implementation, including cutting bureaucracy, speeding up permitting for industrial projects and allowing more flexible working-time models.
The BDI has submitted 253 proposals to reduce red tape, Leibinger said, and argued that bringing forward a cut in corporate tax could provide growth impulses as early as 2026.
(Reporting by Maria MartinezEditing by Ludwig Burger)