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German industrial production reported to decline

Berlin, Feb 7 (Prensa Latina) Germany's industrial production index closed 2024 with a year-on-year decline of 4.5 percent and the situation could worsen in the course of 2025, two reports indicated today.

This Friday, the Federal Statistical Office (Destatis) reported that activity in the sphere decreased in real terms by 2.4 percent in December compared to the previous month, placing the indicator at its lowest level since the fall recorded in May 2020, at the beginning of the Covid-19 pandemic.

For the year as a whole, the drop was 4.5 percentage points compared to 2023 in calendar-adjusted terms, said Destatis, which attributed the situation to the negative performance of key sectors such as the automotive, pharmaceutical and machinery maintenance and assembly sectors.

A survey by the ZEW Institute for Economic Research, published by the DPA agency, indicated today that many companies fear a deterioration of the situation in 2025 due to external factors, including possible economic decisions by the United States under the administration of President Donald Trump.

Around three-quarters of companies in the industry and information economy expect negative consequences, of which 15 percent foresee very negative effects, the German media outlet said.

Only around seven percent expect a positive effect on the economy, the media report added.

According to Daniel Erdsiek, director of the ZEW survey, business pessimism linked to relations with the Americans is varied, in correspondence with the magnitude of manufacturing and commercial ties.

In the manufacturing sector, he said, 55 percent of entities with sales to the US market expect the Trump presidency to have a negative impact on their business, and in the case of companies that do not export to that country, the proportion drops to 34 percent.

ef/mem/mjm

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