Germany’s electrical industry anticipates a return to growth by 2025, marking a significant shift from a challenging year. According to Gunther Kegel, President of the ZVEI (German Electrical and Digital Industries Association), the sector hopes to see a return to modest expansion next year. This optimism follows a substantial contraction in 2024, where turnover declined by over seven percent – a sharper drop than experienced during the COVID-19 pandemic in 2020.
The newfound optimism represents a change in outlook. Previously, the industry had projected a continued slight contraction in real production. However, the current economic climate is showing signs of improvement.
This prospective recovery remains contingent on ongoing trade disputes, particularly concerning relations with the United States. Kegel cautioned that a negative resolution to these discussions, specifically referencing decisions made by former US President Trump, could push 2025 results below the zero-growth line. He emphasized, however, that an existential crisis for the German electrical and digital industries is not currently foreseen. A 30% tariff, he stated, would effectively price German suppliers out of the American market for many products.
The German electrical and digital industries are a vital sector of the national economy, employing almost 900,000 people, placing it as the second-largest industry in Germany after mechanical engineering. Kegel predicted a future where the industry will become the most important in Germany within the next decade.
