German economy in 2024 in a state of shock - negative outlook for investments and employment

German economy in 2024 in a state of shock - negative outlook for investments and employment

According to a report by www.n-tv.de, the German economy is unlikely to experience a strong upswing in 2024 either. According to a survey by the German Economic Institute (IW Cologne), only 23 percent of companies have positive expectations for the coming year, while 35 percent have negative expectations. This signals “a continuation of the economic paralysis in Germany”. This economic standstill is explained by increased energy prices, high inflation, geopolitical uncertainties and a slowdown in the global economy.

In terms of employment, only 20 percent of companies plan to hire more employees, while 35 percent expect to cut jobs. In addition, only 27 percent of companies are signaling higher capital expenditure in the coming year, while 36 percent are planning on lower budgets. This suggests that the investment weakness will not be overcome in 2024.

The survey also shows that the construction sector and industry in Germany continue to experience crises. The economic prospects have deteriorated significantly, particularly in the South-East and North regions. In these regions, a balance of optimistic and pessimistic assessments of more than minus 20 percentage points is expected.

These negative prospects for economic development in Germany could lead to continued weakness in investment and possible job cuts. The increased energy prices and the general increase in prices could also have a greater impact on the basic materials industry and the regions in which it is more strongly represented.

Overall, these developments could lead to continued economic paralysis in Germany, which would further hinder economic recovery. It is therefore important that political and economic measures are taken to mitigate the negative impact on businesses and the labor market and to promote long-term economic development.