Germany 2025: Economy at the turning point - Analysis with figures, trends and outlook

The economic situation in Germany at the end of 2025 is more complex than ever. After five years characterized by a pandemic, energy crisis, geopolitical tensions, supply chain problems and historically high inflation, a picture emerges that many companies describe as "permanent crisis mode".

With the new editorial _"The state of the German economy in 2025 - five years of crisis, figures, trends and outlook"_, Oldenburg entrepreneur and author Markus Schall publishes a comprehensive look at the current economic situation - based on key indicators, the latest data from Ifo, DIHK, Creditreform and other sources, as well as his own experience from the B2B market.

A sober look at five years in crisis mode

Since 2020, Germany has experienced one stress phase after another. While some crises have subsided on the surface, their consequences continue to have a deep impact on economic structures. Markus Schall's article shows in detail how these five years have changed Germany as a business location. Among other things, the analysis sheds light on

* the development of the Ifo business climate index
* slumps in investments and orders
* the massive increase in corporate insolvencies
* the growing economic uncertainty
* the impact of high energy prices
* the declining international competitiveness
* structural bottlenecks such as labor shortages and bureaucracy

The article does not present this data in isolation, but links it to the major economic trends of recent years - and shows how many of today's problems were announced long beforehand.

What the indicators really say about the mood in the economy

The major economic indicators reveal a clear trend: Companies are increasingly critical in their assessment of the situation. The Ifo index remains depressed, the DIHK speaks of a "reluctance to invest" and Creditreform reports the highest number of company insolvencies for over a decade.

The article shows how these key figures are connected and why the uncertainty of many companies does not just reflect short-term phenomena, but is an expression of a deeper structural change.

Personal insight from the ERP market: When investments fail to materialize

The press release also addresses a personal observation that Markus Schall has made as a long-standing provider of ERP software in Germany: Many companies are investing significantly less in digitalization, process optimization and modern IT systems - areas in which budgeting used to continue despite the crisis.

This reluctance is a "ground signal" from everyday economic life that fits perfectly with the overall situation: Less planning certainty means less investment, even in essential systems.

Structural weaknesses that won't disappear overnight

The article deliberately distances itself from daily political headlines and looks at the bigger picture that has been affecting Germany for years:

* faltering digitalization
* complex regulation and bureaucracy
* high energy prices in international comparison
* lack of innovation momentum
* Demographic pressure
* Weak investment in industry and SMEs

These factors act as a background noise that weighs on the location - regardless of economic ups and downs. Schall places these weaknesses in their historical context and shows how they have worsened over the last five years.

A cautious outlook: Why 2026 could be the start of a turnaround

Despite all the challenges, the outlook is not gloomy. The article highlights that 2026 could be a potential turning point year - not through political measures, but through technological developments.

Artificial intelligence and automation in particular could provide the decisive boost to productivity that Germany urgently needs. Companies that automate processes and digitalize routine tasks at an early stage will benefit particularly from the coming structural change. Markus Schall puts it this way in the article:

_"AI will come anyway - so it's smart not to fight it, but to use it. Companies should start now to consistently automate energy guzzlers and recurring processes."_

This means that the opportunity for economic recovery lies not in short-term programs, but in sustainable efficiency gains through technology.

An in-depth editorial for anyone who really wants to understand the German economic situation. The article connects:

* hard numbers
* economic correlations
* personal insights
* historical context
* and a realistic outlook for the future

Read full article

The detailed editorial "State of the German economy in 2025 - Five years of crisis, figures, trends and outlook" is now available in Markus Schall's online magazine.

The article can be read free of charge and is aimed at readers who are looking for a clear, comprehensive and comprehensible assessment - without alarmism, but also without whitewashing.

Frequently asked questions and answers (FAQ)

* Why is a review of the past five years economically so important?
Because it is difficult to understand the current situation without looking back. Many developments that will become visible in 2025 have their roots in decisions and burdens that have accumulated since 2020: Pandemic, energy prices, geopolitical disruptions, inflation, skills shortages. Only when you look at these five years as a coherent block do you recognize the structural patterns that are shaping the economy today.

* What data was analyzed in the article - and why this data in particular?
The article is based on key economic indicators such as the Ifo Business Climate Index, the DIHK investment surveys, Creditreform data on insolvencies and various industry observations. These sources have been regarded as solid barometers of economic sentiment for decades. They show how companies think, plan and react - not what political debates claim.

* Why have corporate insolvencies risen so sharply in 2025?
Insolvencies are not rising because entrepreneurs are suddenly "doing worse". Rather, higher interest rates, high energy prices, weak consumer sentiment and increasing bureaucracy are hitting business models that were already operating at their limits. Many companies were no longer able to compensate for these additional burdens. Insolvencies are therefore often a delayed indicator - they show what has built up over the years.

* What role does uncertainty play in companies' decision-making processes?
Uncertainty is one of the biggest investment killers of all. If companies do not know how energy prices, regulation, taxes and international framework conditions will develop, they postpone investments - even in areas that are urgently needed. This is exactly what institutes and associations have been increasingly observing since 2023, and this pattern is particularly clear in 2025.

* How much of a burden does energy policy place on Germany as a business location?
Germany has traditionally had high energy prices, but after 2022 these have reached a level that has become a real competitive disadvantage for many companies. Energy-intensive industries are coming under greater pressure, but SMEs are also feeling the consequences. The article shows that this development has long-term consequences for the attractiveness of the location - and why industrial production has been stagnating for years.

* Which structural weaknesses will weigh most heavily in 2025?
These include delayed digitalization, complicated regulation, a shortage of skilled workers, a high tax and duty burden, barriers to innovation and a low willingness to take risks compared to other countries. These weaknesses are not new, but have become more apparent in the last five years. The article places them in historical perspective and shows why they will not disappear in the short term.

* Can artificial intelligence really contribute to an economic turnaround?
Yes - but not as a quick fix, but as a long-term productivity driver. AI can bring enormous efficiency gains to companies, especially when repetitive tasks are automated. The opportunity lies in relieving employees of routine tasks and assigning them to more meaningful tasks. Those who start early will benefit the most because the learning curve is steep. The article makes it clear that the turnaround will not happen on its own - you have to actively prepare for it.

* Why is the outlook in the article cautiously optimistic despite the crisis?
Because economic developments are not linear. After long phases of uncertainty and structural burdens, new opportunities often arise. AI, automation, new business models and a possible geopolitical stabilization effect from 2026 could increase productivity again. Optimism without a sense of reality would be naive - but realism without hope would be just as wrong. This article strikes a balance between the two.

M. Schall Verlag
Hackenweg 97
26127 Oldenburg
Germany

https://markus-schall.com
Herr Markus Schall
info@schall-verlag.de

Schall-Verlag was founded in 2025 by Markus Schall - out of a desire to publish books that create clarity, inspire reflection and consciously avoid the hectic flow of the zeitgeist. The publishing house does not see itself as a mass marketplace, but as a curated platform for content with attitude, depth and substance.

The focus is on topics such as personal development, crisis management, social dynamics, technological transformation and critical thinking. All books are created out of genuine conviction, not market analysis - and are aimed at readers who are looking for guidance, insight and new perspectives.

The publishing house is deliberately designed to be compact, independent and with high standards in terms of language, content and design. Schall-Verlag is based in Oldenburg (Lower Saxony) and plans multilingual publications in German and English.

This release was published on openPR.