German Chambers of Industry and Commerce (DIHK) on Thursday cut its growth forecast for Europe's biggest economy to 2.3% from the 3.0% it had predicted in early summer, due to rising energy and raw material prices.
The survey of 28,000 firms across all sectors showed that 58% companies saw rising prices as a business risk, compared to 42% in DIHK's previous poll.
Skilled workers shortage and climate protection issues are also hurdles for companies, DIHK added.
"We will hardly reach the pre-crisis level before the end of next year," DIHK managing director Martin Wansleben said, adding that there was even less scope for steady investment-driven growth.
"Politicians must now do everything they can to make Germany an attractive investment location again," Wansleben said.
(Reporting by Christian Kraemer; Writing by Zuzanna Szymanska; Editing by Riham Alkousaa)