German industry in danger: IW warns of stagnation and calls for effective economic policy

German industry in danger: IW warns of stagnation and calls for effective economic policy

According to a report by www.hasepost.de The German Economic Institute (IW) warns of a weakening of industry due to economic stagnation and calls for an effective economic policy.

The economic stagnation in the second quarter, high energy costs and rising interest rates are putting a strain on German industry, according to the IW. The construction industry is particularly affected by this. The institute also complains about bureaucratic hurdles that make medium-sized companies in particular pessimistic. There is a real danger that Germany could lose industries as long as the transformation of the energy system is not successful.

Since the previous policy was more focused on crisis management, the IW is now calling for an effective economic policy in order to solve the existing problems in the long term.

These developments could impact the financial market, particularly with regard to industrial and energy stocks. Rising energy costs and uncertainty in the industry could lead to a decline in investment, which in turn could affect stock prices. In addition, rising interest rates could have a negative impact on real estate and construction companies.

It is important that investors and companies pay attention to these developments and potentially prepare for changes in these sectors. The IW's call for effective economic policy shows that the economic challenges must be taken seriously in order to ensure long-term stability and growth.