The findings of the KfW ifo Credit Constraint Indicator show that the economic downturn in Germany hampered corporate lending business in the fourth quarter of 2024 as well.-

Access to credit was more restrictive for SMEs than ever before. A maximum of 32% of small and medium-sized enterprises reported strict bank lending standards. This tightening of lending practices affected almost all economic sectors, especially wholesale, manufacturing and retail. These segments are suffering from reduced sales and are already considering job cuts. Large enterprises experienced tighter lending standards as well. Overall, credit demand remained below the long-term average across all size classes. The easing of monetary policy led to a moderate drop in credit interest rates but demand for loans recovered only marginally.

KfW-ifo-Credit Constraint Indicator Q4 2024(PDF, 224 KB, accessible)

Press release