Investment weakness in Germany: 2025 expected only minimal increase!

Investment weakness in Germany: 2025 expected only minimal increase!

Berlin, Deutschland - A worrying message for the German economy: The weakness of the investment continues! In its current economic report, the Federal Association of German Volksbanks and Raiffeisenbanken (BVR) warns that companies and private households can only expect a lean increase in investments by 0.25 percent in the coming year. One year after the investments have already been reduced by around two percent, the upheaval phase remains noticeable in the German economy.

Andreas Bley, the BVR chief economist, emphasizes that Germany has been suffering from serious investment weakness for five years and lives far behind its European neighbors. This precarious situation is shaped by high economic policy uncertainties in Germany. Factors such as the end of the traffic light coalition and the potential political changes in the United States could also burden the investment climate. Current figures show that the investments are price -adjusted by the spring of 2024 by a total of 9 percent compared to times before coron apandemy.

credit demand remains behind expectations

Another alarm call: The company's credit demand only increases minimally! According to the latest Bundesbank numbers for the allocation of new credit, the situation has hardly improved in September - a clear sign that the investment activity will not attract in the near future. Although a small light at the end of the tunnel is shown in private housing, the new loan allocation, but this development is only at the beginning and indicates slow recovery.

The business forecasts remain dark. The recessive tendencies seem to end only slowly, and there is no more than a small plus in the investments. While falling inflation could possibly strengthen consumer confidence, it remains to be seen whether the planned interest rate reductions of the European Central Bank will actually boost the willingness to invest. Previous declines in long -term interest rates are too weak to significantly mobilize the investments.