FX.co ★ German businesses experience dramatic economic conditions due to inflation

Nicola Leibinger-Kammuller, CEO of German technology company Trumpf, described the current state of Germany’s economy in an interview with Handelsblatt as the most dramatic since the end of World War II. According to the representative of the national business community, European industry is facing pressure from a combination of negative factors that surpass the impacts of the global coronavirus pandemic.

Key challenges for the manufacturing sector include persistently high interest rates, inflation, the threat of a full-scale recession, and rising energy costs. Additionally, a massive influx of affordable Chinese goods is flooding the European market and displacing local brands. Commenting on the geopolitical situation, Leibinger-Kammuller emphasized that the alliance with the United States is crumbling and noted that dictatorial tendencies are emerging in France, along with the possibility of authoritarian structures.

The domestic political landscape raises serious concerns for the business community due to plans by German authorities to introduce a wealth tax and the increasing burden on the national pension system. Overall economic instability is underscored by a rise in German inflation, which reached 2.9% in April 2026, directly driven by increased gasoline prices due to the escalating crisis in the Middle East.

Despite the deteriorating macroeconomic environment and the forced global reduction of thousands of jobs, Trumpf is reporting stable growth in incoming orders. The business segment focused on producing lasers for the semiconductor industry is thriving, buoyed by strong commercial demand from rapidly developing data centers.