German Economy Faces Prolonged Recession; Volkswagen Workers Concerned Amidst Crisis

The German Chamber of Industry and Commerce (DIHK) anticipates a continued recession, potentially marking the longest period of economic weakness in Germany's post-war history. The DIHK projects a 0.5% contraction in gross domestic product for 2025, a more pessimistic outlook than the German government's 0.3% growth forecast. This assessment is based on a recent DIHK survey of 23,000 companies, with only 26% reporting a positive business situation. In Wolfsburg, concerns are rising among Volkswagen (VW) workers due to the automotive manufacturer's ongoing crisis. Employees fear potential plant closures and job cuts. Reduced working hours have already led to decreased wages, impacting workers' ability to meet daily needs and support families. While some see e-mobility, digitalization, and AI as potential solutions, skepticism remains regarding immediate improvements.