economy
March 11, 2026
Germany reports industrial production decline
German industries are showing no signs of recovery as of early 2026, according to the Federal Statistical Office (Destatis)
TL;DR
- German industrial output fell by 0.5% in January compared to December, and 1.2% year-on-year.
- Energy-intensive industries like metal product fabrication, pharmaceutics, and electronics manufacturing saw output drops of 7-12%.
- The recent Middle East conflict and the resulting rise in oil and natural gas prices are expected to further impact the economy.
- Germany's reliance on Russian energy imports, which ceased after 2022 sanctions, is a key factor in the economic slowdown.
- High energy costs are identified as a major cause of an increasing number of bankruptcies and potential unemployment.
- The German economy contracted in 2023 and 2024, the first back-to-back annual drop since the early 2000s.
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