Germany's Federal Association of German Industries (BDI) has drastically cut its economic growth forecast for 2026, now projecting expansion of just 0.4 percent.
The revised outlook, announced Monday in Berlin on the occasion of Industry Day, signals a stark deterioration in sentiment among the country's industrial base.
The downgrade reflects mounting pressure on German manufacturers, who are grappling with sluggish domestic demand and headwinds in key export markets.
The BDI's revised figure represents a significant pullback from earlier expectations, highlighting the vulnerability of the sector to broader global economic softness.
This pessimistic assessment aligns with a wider trend of caution across European and global markets.
Recent reports indicate that China's economy is showing signs of faltering after a strong first quarter, while major service firms like Accenture have lowered their full-year guidance citing challenging demand conditions.