KfW-ifo Credit Constraint Indicator Q1 2025

The fragile economic situation and trade policy uncertainty are making it difficult for companies to access credit. The survey results among companies, as reflected in the KfW-ifo Credit Constraint Indicator, show this for the first quarter of 2025.

A new record share of medium-sized companies faced strict bank standards in credit negotiations. With nearly 34% of small and medium-sized enterprises, the highest proportion from the previous quarter has been surpassed again. Although access to credit for large companies has eased somewhat, it is far from average. Only nearly one in four large companies reported credit restrictions, down from nearly one in three at the end of 2024. The difficult economic environment is the main reason for the credit restrictions across both business classes. Additionally, a selection effect is influencing the results, as the number of credit-seeking companies with weak finances is likely to have increased.

KfW-ifo Credit Constraint Indicator Q1 2025(PDF, 122 KB, accessible)

Press release