No signs of real upswing according to DIHK: Financial expert warns of economic downturn

No signs of real upswing according to DIHK: Financial expert warns of economic downturn

Martin Wansleben, General Manager of the Association of German Chambers of Industry and Commerce (DIHK), stated in a recent DIHK survey on the economy that there are currently no signs of a real economic upswing. According to the survey, more than a third of the companies surveyed expect a worse business situation in the next twelve months. Reasons for this include climate change, geopolitical risks, labor shortages, technological change and energy policy. Wansleben hopes that at least the lowest point will be reached in 2024 and that things will look up afterwards.

The results of the DIHK survey show that German companies are increasingly pessimistic about the future. Companies' investment plans and employment intentions have also decreased, which is due to the difficult economic situation and the shortage of skilled workers. Industry, which has previously been a mainstay of the economy, no longer sees itself in this role and is planning fewer investments.

Companies are also dissatisfied with the federal government's economic and location policies. Over 50 percent of the companies surveyed see the economic policy framework as a risk for their business. Politicians should act quickly and not only announce improvements, but also implement them concretely. Companies particularly criticize the bureaucracy as it leads to delays and new reporting requirements.

The Chamber of Commerce and Industry is calling on the federal government to discuss less and act more. Companies need relief from energy prices, an examination of reporting requirements and further international trade agreements. In addition, a rapid expansion of depreciation options is called for in order to promote investment.

The results of the DIHK survey clearly show that the German economy is currently facing many challenges and needs quick and concrete support from the government. It remains to be seen how politicians will react to this.

Source: web.de