Most companies in Germany anticipate a further downturn in the economy. According to a survey conducted by Forsa for the Federal Association of German Employers’ Associations (BDA), 63 percent expect the economic situation to worsen over the next six months.
These expectations show a noticeable decline when compared to the BDA survey from November 2025. Only six percent of businesses anticipate improvement, while 63 percent (an increase of 11 percentage points) foresee worsening conditions, and 29 percent expect no change.
The construction industry appears to be the most pessimistic sector, while the hospitality industry is comparatively less likely to anticipate a decline. Overall, companies continue to identify regulations and bureaucratic requirements as their biggest challenge, with 83 percent pointing to this as the greatest burden.
In terms of their own economic standing, 62 percent of companies still rate their situation as good or very good (down from 67 percent last year), while 37 percent rate it as less good or poor (up from 33 percent last year).
Satisfaction with the federal government remains low. It has dropped from 21 percent last year to 19 percent. Furthermore, 77 percent of respondents are less or entirely dissatisfied with politics (down from the previous year’s figure of 78 percent). Regarding the policy for the economy and job market, only 10 percent of companies are satisfied.
Rainer Dulger, the president of the employers’ associations, told “Bild am Sonntag” “Entrepreneurs are optimists-but not dreamers. The economy has been waiting for real growth impulses for almost a year. Many businesses are sobered by reality: 63 percent expect deterioration. This is an alarm signal that politics cannot ignore”. Dulger added, “We are at a crossroads: either a large reform package arrives now, or Germany will continue to slide downwards”.
For this “Employers’ Barometer” the polling institute Forsa surveyed 1,001 privately owned companies in Germany with at least ten employees. The survey period was from February 23 to March 20, 2026.
