Berlin: The Federation of German Industries (BDI) on Monday lowered its 2025 economic growth forecast for Germany to minus 0.3% from minus 0.1% due to the impact of higher US tariffs on exports. "Industrial production remains significantly below the pre-crisis level of 2019, and capacity utilization is only 77%," the BDI said in a statement.

According to Anadolu Agency, the BDI highlighted that a strong economy is an important prerequisite for strengthening sovereignty and overall defense. German industry is determined to assume responsibility for the region's security, viewing the country's defense capability as a joint task of government and business.

"We still have a long way to go to get out of the recession," said BDI head Peter Leibinger. He expressed optimism about a potential economic upturn next year if the federal government continues its current initiatives, referencing measures such as the 'investment booster' and tax and energy cost relief.

Leibinger emphasized the necessity of further measures and structural reforms to boost the economy's competitiveness. He stressed the importance of permanently reducing energy costs to competitive levels and identifying savings in the energy transition.

Additionally, Leibinger called for a significant reduction in bureaucracy, advocating for concrete reduction targets from both the EU and the German government to achieve this aim.