What is the BDI's outlook for German industrial performance in 2026, and what key factors does it cite for this forecast?

The BDI forecasts stagnation — not recovery — for German industry in 2026, stating explicitly: 'For 2026, we no longer expect a recovery, but stagnation.' This assessment follows a multi-year decline, with industrial production having fallen every year since 2022. The association attributes this outlook to converging pressures: higher energy costs, persistent supply chain risks (especially shipping disruptions), domestic structural weaknesses, and newly intensified downside risks from the conflict in Iran — including costlier energy, broader price pressures, and logistics disruptions. BDI President Peter Leibinger underscores that Germany’s underlying weakness is 'primarily structural,' pointing directly to high labour costs, tax burdens, bureaucratic inefficiencies, and elevated energy expenses, all of which have eroded the country’s international competitiveness.

What specific policy actions does BDI President Peter Leibinger urge the German government to take, and by when?

BDI President Peter Leibinger urges the German government to agree on a broad reform package 'by summer' to spur growth and investment. The package must include three concrete elements: tax relief, dependable investment incentives, and a reduction in red tape. He further calls for faster and more digital public administration, stressing that policymakers must move beyond short-term crisis responses and instead implement foundational, forward-looking reforms.

German Industry Faces Stagnation in 2026, BDI Says

Apr 20, 2026

The BDI industry association forecasts stagnation for German industry in 2026 due to rising energy costs and supply chain risks, warning that manufacturing could contract further if shipping disruptions continue.

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German Industry Faces Stagnation in 2026, BDI Says

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