Recruit Sales in Germany Update Bulletin June 2025

GERMAN ECONOMIC INDICATORS June 2025

In June, the German economy is experiencing stagnation. Economic indicators present a mixed picture, with some indicators suggesting a slight recovery while others indicate continued stagnation. Overall, the German economy is expected to grow only slightly in 2025, with real GDP expected to remain flat moving forward.

Exports are projected to decline further, while public investment and expectations of looser fiscal policy are expected to support a gradual recovery in equipment investment. A looser fiscal policy is expected to drive the economic recovery moving forward.

The inflation rate is expected to remain at approximately 2.1% in June 2025. The overall inflation rate is expected to slow down in 2025, with the Harmonised Index of Consumer Prices (HICP) expected to average 2.2%.

New orders in manufacturing are showing a slight positive trend, whilst production has decreased. 

Business sentiment remains rather gloomy overall, despite some improvements in individual indicators.

The German Trade Associations' consumer barometer and the GfK consumer climate index indicate a positive trend, with the Trade Associations' consumer barometer reaching its highest level since August 2021. 

Factors Influencing the German Economy:

• Geopolitical Uncertainty: Geopolitical events and the new US trade policy are weighing on the German economy. 
• Structural Changes in Manufacturing: Manufacturing is undergoing a fundamental structural shift, with a focus on product development and distribution. 
• Government Debt: Government debt is expected to increase rapidly in 2025 and 2026 to finance much-needed changes in industry and infrastructure.

Overall, the German economy is expected to remain stable in 2025, with a potential for a slight recovery in 2026. Structural reforms will be crucial in creating confidence and stimulating investment. The new coalition government of the SPD, CDU, and CSU faces numerous challenges moving forward, particularly in reviving the domestic economy.

German Exports June 2025

Exports are projected to contract by 1.9% in 2025. In April 2025, German exports decreased by 1.7% compared to March 2025, reaching a value of € 131.1 billion.

This marks a three-month low, and the decline was attributed to numerous factors, including a drop in sales to the US, China, and the UK. However, exports to the European Union saw a slight increase. For the first four months of 2025, total German exports were up by 0.2% year-on-year. Generally, German exports are expected to decline significantly in 2025.

Employment June 2025

Although the unemployment rate has decreased slightly in recent months, it remains higher than it was in the same period last year. The decline in industrial production due to tariffs is cooling the labour market and slowing wage growth.

Summary

If you are looking to recruit experienced sales staff to capitalise on new or existing markets within Germany, the UK, Europe, or further afield, please get in touch with us for a no-obligation discussion.

Some facts about Germany

Germany has a population of eighty-four million people.

Germany is the seventh-largest country in Europe. Covering an area of 137,847 square miles, of which 34,836 square miles is covered by land and 3,011 square miles contains water.

The economy of Germany is a highly developed social market economy. The country accounts for about 28% of the euro area economy, according to the IMF. 

With a gross domestic product of € 4,121 billion in 2023, Germany is the third-largest economy in the world, after the United States and China, making it the largest economy in Europe. Exports of motor vehicles and parts, as well as chemical products, make Germany the third-largest exporter in the world. At 70%, the service sector accounts for the largest share of the country's gross domestic product.

Germany is a world-leading location for organising international trade fairs. Two-thirds of the major global industrial events take place in Germany. Ten million visitors attend around 150 international trade fairs and exhibitions each year.

Germany is a top destination for investors, attracting an ever-increasing number of companies to make greenfield investments here. As the largest economy in Europe, Germany entices its investors with its central European location. 

Summary 

If you want to recruit experienced sales staff to capitalise on new or existing markets within Germany, the UK, Europe, or further afield, please contact us for a no-obligation discussion. 

Please note that the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends