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Fortune
Fortune
Ryan Hogg

Germany in 'deep economic crisis' and set for longest decline since 1990 reunification

Federal Chancellor Olaf Scholz (SPD), the SPD's lead candidate for the 2025 federal election, visits the Samson AG construction site as part of the federal election campaign. (Credit: Andreas Arnold/picture alliance via Getty Images)

Germany is stuck in a deep economic crisis amid a structural break that the country’s leading industry lobby predicts will lead to the most protracted downturn since reunification nearly 35 years ago.

The Federation of German Industries (BDI) forecasts the German economy to contract by 0.1% in 2025. That would follow a 0.2% decline in 2024 and a 0.3% contraction in 2023. According to the BDI, Germany’s expected contraction this year is in contrast to projected growth of 1.1% for the European Union.

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