Recruit Sales in Germany Update Bulletin April 2025

Recruiting in Germany Bulletin – April 2025

GERMAN ECONOMIC INDICATORS April 2025

As of April 2025, some economic indicators for Germany include:

GDP: KfW Research expects Germany's GDP to fall by 0.2% in 2025.
Consumer climate: GfK Consumer Climate Indicator stood at -24.5 in April 2025, which was below market expectations of -23.0 
Weekly activity index: The WAI for the week of March 24–30, 2025, was 0.2, which indicates that economic activity was 0.2% above the previous 13 weeks. 
Inflation: The inflation rate in Germany is expected to be 2.1% in 2025
General government balance: The general government balance in Germany is expected to be -2.0% of GDP in 2025
The OECD projects that Germany's economy will grow by 0.7% in 2025. The OECD also expects that low inflation and rising wages will support real incomes and private
Germany's Ifo Institute cut its forecast for economic growth in Europe's largest economy to 0.2%, citing subdued consumer sentiment and companies' reluctance to invest.

The country's future economic policy remains uncertain while Europe's biggest economy awaits a new government following the February elections. However, Germany's economy has often shown remarkable resilience in the face of such uncertainties, a testament to its stability and strength.

However, it must be accepted that Germany's downgrade has been due to the 'significantly increased risks to trade amid the return of US President Donald Trump to the White House and the potential changes to US policy he has introduced.

His emphasis on enforced tariffs on many countries, including Germany, which came into force on April 3rd, is expected to impact the German economy significantly. This will most likely hurt the German motor car industry and steel products, as the US market is the most important for both sectors.

German Exports April 2025 / Export Development 2024/2025

In 2024, goods worth €1,555.4 billion were exported. In January 2025, exports fell by 2.5% compared to December 2024. The trade surplus was €16.0 billion.
Most Important Export Goods
Motor vehicles and parts were Germany's most important export product in 2024.
Machinery and chemical products ranked second and third among the most important export goods.

Export Volume of Passenger Cars

In 2024, around 3.4 million new passenger cars worth €135.0 billion were exported from Germany.
The United States is the largest buyer of new passenger cars from Germany, which is now becoming a problem for Germany due to Donald Trump's new tariffs on foreign vehicles entering the USA.

China is the second-biggest market for German cars. However, the market is also declining due to heavy internal competition from Chinese motor car OEMs like BYD and Nio.

The United States is Germany's most important trading partner, and according to preliminary results, goods worth €253.0 billion were traded between Germany and the United States in 2024 (exports and imports).
According to the Federal Statistical Office (Destatis), the United States was Germany's most important trading partner in 2024.

However, in light of Donald Trump's imposed tariffs, Germany and the EU may have to alter their trading activities with the USA to counteract the rising prices of exported goods.

Employment in Germany Trends April 2025

The unemployment rate in Germany is expected to be 3.3% in 2025.
Germany's employment market in 2025 is marked by a slight decline in employment and a continued tendency for companies to cut jobs. 
In January 2025, the unemployment rate was 3.5%, with some 45.6 million people employed in Germany. 
In January 2025, the number of unemployed increased by 271,000 compared to January 2024, with many companies planning fewer new hires and continuing to cut jobs. Almost all branches of industry in Germany want to reduce their headcount, especially within the automotive and some manufacturing sectors.

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 land and 3,011 square miles contain water.
Germany's highly developed social market economy has a potential yet to be fully realised. According to the IMF, it accounts for about 28% of the euro area's economy, which speaks volumes about its strength and resilience.
With a gross domestic product of 4,121 billion euros 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 vehicle parts and chemical products make Germany the third-largest export nation in the world. At 70%, the service sector accounts for the largest share of the country's gross domestic product.
Germany is one of the world’s premier locations for organising  international trade fairs. Two-thirds of the major global industrial shows/events occur in Germany, and ten million visitors attend around 150 international trade fairs and exhibitions annually.
Germany is a top destination for investors, attracting an ever-increasing number of companies to make greenfield investments here. Germany is the largest economy in Europe, and its central European location entices its investors. Still, it simultaneously puts them off with the current deterioration of Germany's situation as an economic destination.

Summary

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

Please note 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