German firms brace for production declines in 2024 amid geopolitical headwinds and slowing global growth

Over a third of German firms expect production to fall in 2024 due to geopolitical issues and a slowing global economy.

The German Economy Institute survey found 37% of firms think production will drop, while 23% expect it to increase.

Prospects are particularly poor in the industrial and construction sectors, with nearly 40% of industrial firms expecting to cut jobs and investments.

The services sector is the only bright spot, with 34% of firms expecting to create jobs and boost investments.

A separate survey of small and medium enterprises (SMEs) also showed a gloomy outlook, with 45% expecting declining turnover in coming months.