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The VDMA Business Survey Q2/2025 ran from June 24 to July 4, 2025 and received arround 1230 responses from 936 companies. The mood remains tense. Many are not expecting turnover growth until 2026.

Global machine turnover is expected to grow by one percent in price-adjusted terms in 2025 compared to the previous year, with significant differences in regional dynamics.

The global business situation in the mechanical engineering sector remains mixed. While India and Brazil are impressing with good figures, China is struggling with structural challenges. The USA is characterized by the latest tariff policy.

In light of Trump’s tariffs, analysts highlight ASEAN’s risks from trade tensions but remain optimistic about the region's resilience. Singapore’s semiconductor industry stays cautious, exporters diversify suppliers and customers amid uncertainties.

With a liaison office for the ASEAN region, the VDMA aims to support European mechanical engineering in the region. Tiffany Ang has been representing the VDMA in the ASEAN region based in Singapore since January 6, 2025.

On October 28, the Russian central bank raised the key interest rate to 21 percent. At the same time, it indicated that the interest rate could soon rise even higher. The reasons are high inflation and the overheated economy.

The following summarizes the discussions with VDMA members' branches in Turkey and with Turkish mechanical engineering companies as well as the second meeting of VDMA members in Istanbul.

Following last year's price-adjusted decline in turnover, global machinery turnover is expected to rise by a moderate 1 percent in price-adjusted terms in 2025.

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There are many reasons for European companies to think about diversification of supply chains, production sites and sales markets. Indonesia is increasingly coming into focus in the machinery and plant engineering sector.

It's the same exercise every year: as part of the preparation of the management report, an overview of the overall economic development and the situation in the industry usually has to be provided.

The government is investing heavily in infrastructure and there are multiple market opportunities, but the economy is also suffering from currency devaluation.