According to the Federation of German Industries (BDI), industrial production in Germany is expected to increase slightly this year due to order backlogs. However, the outlook for 2023 is bleak, with rising energy prices and geopolitical uncertainties weighing on businesses.
The BDI expects industrial production to grow by around 0.25% this year, after rising by 4.7% in 2021.
The BDI noted that the outlook for 2023 is stagnating. More and more manufacturing companies are facing high energy prices and geopolitical uncertainties.
From January to September this year, the energy-intensive industries cut their production. Metal producers and processors cut their output by 2.3%, rubber and plastics manufacturers by 3.7%, and the chemical industry by 8.2%.