FX.co ★ German industry declines for fourth consecutive year

Peter Leibinger, head of the German Industry Association (BDI), stated that Germany's economy is experiencing the most serious crisis in the history of the Federal Republic. He stated that the government's response to the situation is insufficiently robust, while the industrial sector is in a state of free fall.

Leibinger emphasized that the downturn is not temporary but rather structural in nature. According to BDI forecasts, production is expected to decrease by 2% this year, continuing a negative trend for the fourth consecutive year. In the third quarter, production volumes already fell by 0.9% compared to the previous quarter and by 1.2% year-on-year.

The association's leader called for immediate structural reforms with clear priorities. The current crisis, which began with the pandemic and worsened after the cessation of Russian gas supplies, poses a looming threat of recession for Germany for the third year in a row.