Latest news with #HelenaMelnikov
Yahoo
27-05-2025
- Business
- Yahoo
German businesses warn that economic upturn 'not yet in sight'
Germany's Chamber of Industry and Commerce (DIHK) does not foresee a rapid recovery of the German economy as it struggles to create growth, and called on the new government to make reforms. "The economic upturn that we all want and that our country needs is not yet in sight," said DIHK chief executive Helena Melnikov in Berlin on Tuesday. Fears are growing that, for the first time in Germany's post-war history, economic output will decline for the third year in a row. The DIHK continues to expect a decline in gross domestic product (GDP) of 0.3% for the current year. This makes the organization more pessimistic than the German government, which expects GDP to stagnate in 2025. Melnikov referred to the results of a new DIHK economic survey of more than 23,000 companies which found that the mood remained predominantly poor. Only a quarter of companies rated their situation as good, and business expectations remained pessimistic. According to the survey, companies see the economic policy framework, weak domestic demand, high labour costs, rising social security contributions and high energy and raw material prices as the greatest risks to their bottom line. Added to this is the unpredictable US tariff policy. Melnikov said comprehensive structural reforms, such as faster planning and approval procedures, are necessary to ensure that the planned debt-financed government fund of €500 billion ($570 billion) for investment in infrastructure and climate change measures can have full effect. The new German government has announced a comprehensive package of measures to be implemented before the summer recess to ease the burden on companies. These include a reduction in electricity tax and better depreciation conditions to stimulate investment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
13-02-2025
- Business
- Reuters
German GDP expected to contract 0.5% this year, DIHK says
BERLIN, Feb 13 (Reuters) - The German economy will contract by 0.5% this year, shrinking for a third consecutive year, the German Chamber of Commerce and Industry (DIHK) said on Thursday, forecasting the longest period of weakness in Germany's post-war history. "This is a turning point and emphasises the acute need for action," DIHK managing director Helena Melnikov said, noting that a record 60% of companies see the economic policy framework as their biggest business risk. Increasing competition from abroad, high energy costs, elevated interest rates and uncertain economic prospects have taken their toll on the Germany economy, which contracted in 2024 for a second year in a row. The survey, conducted among 23,000 companies from all sectors and regions, shows that over the next 12 months, 31% of companies continue to expect business to get worse, while only 14% expect an improvement, the survey showed. In industry, only 22% of companies are planning more investment, while almost 40% are cutting back. "If this trend continues, Germany faces the threat of further deindustrialisation," Melnikov said. Export expectations also remain gloomy, as 28% of companies expect exports to fall over the next 12 months, while only 20% expect sales to other countries to rise. "Declining competitiveness and increasing protectionism are threatening the export-orientated German industry, which has always been a driver of economic growth," said DIHK head of foreign trade Volker Treier.
