Germany’s Foreign Trade Sector Braces for Sales Decline in 2025 Amid Economic Challenges

The German trade association BGA has painted a bleak outlook for the country’s foreign trade sector in 2025, with an anticipated 2.7% decline in turnover compared to 2024. Nearly 80% of businesses involved in foreign trade are expecting a further drop in sales this year, reflecting a challenging economic climate.

Key Economic Strains

Dirk Jandura, President of the BGA, highlighted critical pressures on the economy, including:

• Declining orders and investments: Businesses are scaling back operations, signaling weakened market confidence.
• Increasing insolvencies: Financial stress among companies is on the rise, adding to economic instability.

Election Year Focus on Growth Strategies

As Germany prepares for elections on February 23, reviving economic growth has become a central theme in political campaigns. The BGA has called for measures to support the economy, including:

• Increased investment in infrastructure.
• More business-friendly regulatory frameworks.
• Reductions in energy and labor costs.
• Cuts in bureaucratic red tape to ease business operations.

These measures are seen as crucial to boosting Germany’s position as Europe’s largest economy and addressing ongoing stagnation.

Wholesale Trade Outlook

The outlook for Germany’s wholesale trade sector is similarly pessimistic:

• Survey results: Two-thirds of wholesalers reported declining sales in the latter half of 2024, with 40% anticipating further losses in 2025.
• Projections: The exporters’ association predicts stagnation in the wholesale sector in real terms, alongside a 0.5% nominal decline year-on-year.

Economic Recovery Remains Uncertain

With stagnation in wholesale trade and deteriorating performance in foreign trade, Germany faces mounting economic hurdles. Structural reforms and strategic investments will be critical for reversing the current downturn and bolstering confidence among businesses and consumers alike.

Observers will closely monitor the outcome of the February elections, as new policy directions may play a significant role in shaping the country’s economic trajectory for 2025 and beyond.