The German Chambers of Commerce and Industry (DIHK) has lowered its economic growth forecast for the current year to just 0.3 percent. This new projection marks a significant drop from the one percent growth rate previously anticipated at the turn of the year, according to reporting by “Welt am Sonntag”.
The recent DIHK economic survey revealed that 26 percent of surveyed companies assessed the current economic environment as poor-a figure comparable to the levels seen during the COVID-19 pandemic. Furthermore, the business outlook has deteriorated: only 13 percent expect improved business over the next twelve months, while one-third anticipate a downturn. The proportion of pessimistic companies has risen by eight percentage points since the start of the year.
Helena Melnikov, the Managing Director of the DIHK, stated, “There was hardly any sign of economic hope on the horizon, and the war in the Middle East is casting another shadow over an already weakened German economy”. She suggests that a solid economic recovery remains distant. Companies have previously struggled under pressures from high labor costs, energy prices, bureaucracy, and taxes. Most recently, the sharp increase in energy and raw material prices has been described by many businesses as the final straw. Currently, these prices are cited as the biggest business risk by 70 percent of respondents.
This forecast is based on a survey conducted between March 23 and May 8, 2026, which gathered 23,416 responses.
