Germany’s BDI warns industrial production to slump further in 2024

By Thomson Reuters Apr 22, 2024 | 1:06 AM

BERLIN (Reuters) – Germany’s BDI flagged on Monday that industrial production is likely to decline again this year and exports will stagnate, as the industry lobby flanked by other groups painted an uncertain picture for German industry amid persistent headwinds.

“Industry in Germany has not yet recovered from the cost and demand shocks, from moments of extremely high energy prices and from inflation,” BDI President Siegfried Russwurm said at Hannover Messe, one of the world’s biggest trade fairs.

The industry association forecast a 1.5% fall in production in 2024, while exports were expected to remain flat following a 1.5% drop in 2023.

“Despite moderate recovery prospects, we must not delude ourselves: Overall, production figures have been showing a worrying downward trend for years,” Russwurm said.

The VDMA Engineering Association said the trough of a slump in foreign orders had been reached, but production was still expected to drop this year overall, confirming its previous forecast of a 4% drop.

“The negative factors are still noticeable,” VDMA President Karl Haeusgen said in a speech at the Hanover Messe.

(Writing by Rachel More; Editing by Sherry Jacob-Phillips)