Negative economic outlook for Europe’s technology industries in 2024

Our economists are also expecting investment to be down 1.2%. This is due in part to weak performance in manufacturing overall, which is impacting demand in the technology sector. Additionally, growth is low across the Eurozone; the IMF forecasts 0.8% growth compared to 2.7% in the USA.

As we move towards the second half of 2024, there is some optimism that demand may rebound towards the end of the year linked to interest rate adjustments, but it is far from certain that this will materialise.

Due to a decrease in turnover, short-term pressures on the labour market have eased. However, once the sector sees an upturn, these pressures are likely to return and now is the time to focus on training and attracting a skilled workforce. 

What measures can the next EU legislature implement to help Europe’s technology industries grow and increase their contribution to the economy?

Our policy agenda for the 2024-2029 legislative cycle, Delivering the Net-Zero Transformation, identifies six fundamental priorities to ensure Europe remains competitive on its path to net-zero emissions. 

“We desperately need to improve the framework conditions which determine the ability of our industries to compete globally. This includes decreasing trade barriers and the burdens of disproportionate and badly designed regulation,” said Malte Lohan, Orgalim’s Director General. “As a major contributor to Europe’s economy and a sector that directly employs 11.7 million people, it is crucial that we create the right business environment for the sector to flourish.”