According to a survey conducted by the German Mittelstand Business Association (BVMW), eight out of ten Mittelstand companies anticipate a rapid contraction of the German economy in 2025.
The Mittelstand refers to traditional German companies, many of which dominate up to 90% of the export market. These firms cannot be classified as classic SMEs (small and medium-sized enterprises). Companies within the Mittelstand category form the backbone of the German economy, particularly in terms of employment.
As reported in WELT, 58% of the surveyed companies expect an economic downturn. One in five companies is already preparing for a crisis within the next twelve months.
The survey also revealed that 40% of Mittelstand companies experienced a decline in turnover over the past year. Another 40% of respondents indicated plans to reduce investments in the coming year compared to the previous year.
Beyond the general economic outlook, Mittelstand companies are particularly concerned about the shortage of skilled labor: 62% fear they will be unable to fill vacant training positions in the upcoming year.
Christoph Ahlhaus, Federal Managing Director of the BVMW, stated: “Not only our economy but also confidence in the recovery has been shaken by the political upheavals of recent years. Anyone assuming political responsibility in Germany must clearly articulate how our economy can move forward again.”
Hans-Jürgen Völz, Chief Economist at the BVMW, emphasized the importance of implementing reform policies in areas such as red tape reduction, energy costs, the labor market, and social policy. These measures are crucial to restoring hope and encouraging companies to invest in Germany.
Völz added, “It is essential to focus on the 3.5 million Mittelstand companies rather than large corporations and organizations that can relocate globally. Well-meaning speeches praising the Mittelstand on Sundays must be matched by concrete political actions in parliament from Monday to Friday.”
