BayBG Annual Reception 2025: “Will everything improve in the new year?”

At the well-attended BayBG Annual Reception 2025, Jürgen Michels, Chief Economist of BayernLB, presented an economic outlook for the year ahead. Addressing an audience of medium-sized business owners, financial service providers and advisors, he outlined potential economic scenarios, including the possible impact of a trade conflict with the United States and policy developments following the German federal elections.

His outlook was mixed: while the U.S. economy is expected to continue growing – driven in particular by a strong and innovative IT sector – Germany is likely to fall further behind. With projected GDP growth of 0.8% in the euro area, Germany is expected to reach only 0.3%, placing it at the bottom of the ranking.

Despite these challenging prospects, Michels emphasized that companies still have significant opportunities to shape their future. Especially in uncertain times, businesses can adapt their strategies and business models, optimize processes and leverage opportunities arising from digitalization and artificial intelligence.