Germany's economy is suffering its "deepest crisis" since the aftermath of World War II, an industry group warned Tuesday, calling on Chancellor Friedrich Merz's government to take urgent action to spark a revival.

Europe's biggest economy "is in free fall, but the federal government is not responding decisively enough," said Peter Leibinger, president of the Federation of German Industries (BDI).

Germany is facing a perfect storm: high energy costs burdening manufacturers, weak demand for its exports in key markets, the emergence of China as an industrial rival and the US tariff onslaught.

It has suffered two years of recession and is forecast to eke out only meagre growth in 2025.

The conservative Merz, who took power in May, has pledged to revive the eurozone's traditional powerhous

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