The German government has revised its economic growth forecast to 0.3 percent in January, down from the 1.1 percent they projected in October 2024.

This revised projection comes amid the completion of the elections in the US as well as the federal German elections after the collapse of the coalition in late November 2024.

This follows a year of slight recession, as the Gross Domestic Product (GDP) fell 0.2 percent during 2024, the second straight year of GDP decline after a 0.3 percent drop in 2023. Construction orders also continued to fall during 2024 and resulted in an overall decrease of construction sales in building construction, of approximately 1.0 percent. Construction escalation rose slightly, climbing between 3.0 – 3.5 percent in 2024.

With demand continuing to fall, uncertain political situations and the potential of a trade war looming, the German construction industry has entered an uncertain time. This requires careful planning and continual adjustments, to safely navigate the volatile economic and political landscape.

This edition of the Germany market intelligence report identifies changing market conditions and where to prioritise efforts in a market that is affected by changing political situations across the globe.