DIHK warns: “Clear signs of de-industrialization” – medium-sized companies are more and more shifting manufacturing overseas | EUROtoday

The German Chamber of Commerce and Industry (DIHK) warns of an elevated migration of home corporations overseas. “The danger is real,” DIHK common supervisor Helena Melnikov advised the Reuters information company on Sunday. Industry particularly is below huge stress. “We see clear signs of de-industrialization: medium-sized companies are relocating their production or closing down completely,” mentioned Melnikov.

400,000 industrial jobs have already been misplaced since 2019. In 2025 there have been greater than 1,600 bankruptcies in trade alone – greater than there have been in twelve years. “This is an alarm signal for Germany as a business location,” emphasised the DIHK managing director. The causes for this are elevated labor and vitality prices, excessive company taxes and a nonetheless huge bureaucratic burden. “If politicians do not take consistent countermeasures, there is a risk of a massive loss of added value and jobs,” mentioned Melnikov.

She referred to the weak financial outlook. The DIHK expects progress of simply 0.7 % for 2026. “This is not an upswing, but a minimum value and is partly due to the fact that fewer public holidays will fall on working days in 2026,” emphasised the DIHK skilled. “After three years without economic growth, this is a weak signal.” The present DIHK financial survey of round 23,000 corporations exhibits that solely 15 % of corporations count on a greater scenario. Every third firm needs to chop investments and each fourth needs to chop jobs. “The necessary momentum is missing for a real recovery,” mentioned Melnikov. “The previous reforms are not being received by companies.”

The rate of interest cuts by the European Central Bank (ECB) alone wouldn’t present any stimulus. These aren’t a alternative for urgently wanted reforms in Germany. “Companies that don’t see a long-term perspective here won’t invest, even if financing costs are lower,” mentioned the DIHK common supervisor. The ECB halved its key rate of interest from 4 to 2 % between mid-2024 and mid-2025. In the second half of the yr it not touched it due to the prevailing dangers of inflation.