Latest news with #GermanIndustry
Wall Street Journal
08-07-2025
- Automotive
- Wall Street Journal
Daimler Truck Expects Significant Job Cuts in Germany
Daimler Truck DTG -2.72%decrease; red down pointing triangle said it expects 'significant' job losses in Germany over the next five years as it shifts production of Mercedes-Benz trucks to a more cost-effective country. In a statement ahead of an investor event, the German truck maker said the decision is part of its previously announced European cost-saving plan of more than 1 billion euro ($1.17 billion), with the job cuts likely to be made through natural attrition, expanded early retirement options and targeted severance packages.
Yahoo
25-06-2025
- Business
- Yahoo
German industry sees 'longer' path out of recession as tensions climb
German industry faces a "longer and more difficult path out of recession" as a result of shocks to the global economy, a trade association leader said on Monday. Peter Leibinger, president of the Federation of German Industries (BDI), highlighted "flashpoints" such as the tariff conflict with the United States and the escalation in the Middle East. Speaking at an event to mark the "Day of Industry" in Berlin, Leibinger said he was worried about Iran blocking the Strait of Hormuz, a crucial shipping lane for oil transport. A temporary blockade in response to the Israeli and US attacks on Iran could have massive implications for oil prices, he argued. Leibinger also warned of tighter export restrictions in China on rare earth minerals, which are needed for many high-tech sectors. The BDI now expects the German economy to fall 0.3% this year, down from its January forecast of a 0.1% drop. Managing director Tanja Gönner said the association's forecast - which is markedly lower than those of other institutes - takes into account growing uncertainty, for example in US customs policy. The BDI assumes that planned US tariffs will come into effect, expecting a 20% duty on some EU goods from July 10. The German government has recently expressed confidence that an agreement between the European Commission and the United States would soon be signed. Looking ahead to 2026, Leibinger said there is "a real chance of an upturn ... If the German government continues to pursue the announced path, then there is a real chance of an upturn next year." Chancellor Friedrich Merz's conservative-led coalition wants to stimulate the economy with tax relief and reductions in energy prices, after Germany experienced two consecutive years of recession. Leibinger spoke of a "confidence problem" in the country, which he argued is slowing down investment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
06-06-2025
- Business
- Reuters
German government spending may take years to boost growth, Bundesbank says
FRANKFURT, June 6 (Reuters) - Economic growth in Germany, the euro zone's biggest nation, will be weaker this year than already muted expectations and increased government spending will not significantly raise growth until the end of 2027, the Bundesbank said on Friday. Once the economic powerhouse of Europe, Germany has been contracting or stagnating for the third straight year now and its recovery keeps getting pushed further into the future as it struggles to overcome structural challenges. Plans by its new government to sharply increase spending on infrastructure and defence are expected to prop up growth in the longer term but the economy will struggle for now, buffeted by the U.S. administration's global trade war. "The new U.S. tariffs and uncertainty about future U.S. policy are dampening economic growth for the time being," Bundesbank President Joachim Nagel said. "This has hit German industry at a time when it had begun to stabilise after a long period of weakness. Exports will fall sharply this year and only increase slightly in 2026, while reduced momentum in industry due to the tariffs will weigh on the labour market and wage growth, the Bundesbank said. Germany's vast industrial sector has suffered a multi-year recession due to high energy costs, competition from Asia and weak demand for an outdated product range in its oversized car sector. This weakness will keep the overall economy stagnant this year and growth will only reach 0.7% next year, the Bundesbank said in a biannual update of economic forecasts. While the 2025 figure is in line with most projections, the 2026 estimate is more pessimistic than figures from either the government or the European Commission, which both saw at least 1%. Further out, government spending, supported by changes in fiscal rules, should help the economy. "We expect the additional government spending on defence and infrastructure to significantly increase GDP growth by the end of 2027," Nagel said. Weak growth will however, continue to dampen consumer price pressures and Germany inflation will ease to 2.2% this year before dipping below the European Central Bank's 2% target in both 2026 and 2027.
Reuters
08-05-2025
- Business
- Reuters
German exports, industrial production rose in March
May 8 (Reuters) - German exports rose more than expected in March as U.S. demand increased in anticipation of U.S. tariffs and a gain in industrial production also beat expectations, potentially pointing to an improvement in the sluggish sector. German exports were up 1.1% in March over the previous month, data from the federal statistics office showed on Thursday. That surpassed a forecast 1.0% increase in a Reuters poll. Imports were down by 1.4% on a calendar and seasonally adjusted basis compared with February. The German trade balance showed a surplus of 21.1 billion euros ($23.9 billion) in March, up from 18.0 billion euros in February. The far-reaching tariffs announced by the U.S. will deal a major blow to German industry. The U.S. was Germany's biggest trading partner in 2024, with 253 billion euros worth of goods exchanged between them. German industrial production rose in March by 3% compared with the previous month, the federal statistics office said on Thursday. Analysts polled by Reuters had predicted a 0.8% rise.
