Huge pessimism in the German economy: where is the hope?

The mood in the German economy has reached a low point. Current surveys show that many business associations are concerned about the future. The reasons for the pessimism are manifold: high costs, a lot of bureaucracy and global crises, for example star reported.

Of the 49 associations surveyed, 31 rate the current situation worse than a year ago. Only four economic sectors recorded an improvement: waste disposal, insurance, trade fairs and real estate. Michael Hüther, director of the German Economic Institute (IW), describes the current situation as worrying and complex.

Serious crisis and possible consequences

Another report highlights that the German economy is in a slowdown due to interest rate hikes, a weakening global economy and uncertainty following a budget compromise. Employer President Rainer Dulger describes the situation as a serious economic crisis. DIHK President Peter Adrian points out that the German economy is currently in difficult waters World reported.

A decline in economic output is forecast for 2023, while only mini-growth is expected for 2024. Companies are withdrawing from investments due to a lack of planning. According to the IW survey, 23 of 47 business associations expect a decline in production or business. At the same time, leading business representatives such as Dulger and Adrian are calling for changes in the federal government's course in order to strengthen Germany's competitiveness.

In a more difficult economic situation, certain industries are facing job cuts, while other areas such as pharmaceuticals and aerospace industry are hopeful about the future. However, the challenge of a skills shortage remains and many medium-sized companies are considering moving their production abroad.