Financial expert: German economy does not expect an upswing in 2024 - economic survey shows economic paralysis.

Financial expert: German economy does not expect an upswing in 2024 - economic survey shows economic paralysis.

According to a report from www.tagesspiegel.de, a survey by the employer-related Institute of the German Economy (IW Cologne) shows that the German economy is not expecting an upswing in the coming year either. Only 23 percent of companies have positive expectations for 2024, while 35 percent have negative expectations. The economic survey signals “a continuation of the economic paralysis in Germany”. The reasons for this are the sharp rise in energy prices due to the Russian invasion of Ukraine, the general increase in prices, geopolitical uncertainty and the significant slowdown in the global economy. This leads to an economic standstill in Germany.

The financial industry should monitor these developments closely as they could have a significant impact on the market. For example, increased energy prices could lead to inflation, which in turn affects consumer purchasing power. Companies planning to invest less in investment and employment could lead to a decrease in economic activity. These developments could have a negative impact, particularly in sectors such as the construction and basic materials industries, which according to the survey are particularly pessimistic.

The regions in the south-east and north of Germany are particularly hard hit by the negative expectations, while the outlook in the south-west and Bavaria is more balanced. However, no clear development can be seen in East and West Germany.

Given these survey results, financial professionals should continue to closely monitor developments in the market and economy and consider possible scenarios for the future of the financial industry.