Weak growth prospects for 2024: Financial expert analyzes the pessimistic expectations of business associations

Weak growth prospects for 2024: Financial expert analyzes the pessimistic expectations of business associations

According to a report by www.tagesschau.de,

The survey by the German Economic Institute (IW) among 47 German business associations showed that the majority of business associations are pessimistic about the new year. Expectations for 2024 are low and no sharp increase in production levels is expected.

Current circumstances, such as high energy prices, a weak global economy and an uncertain budget situation, have dampened sentiment. Chris-Oliver Schickentanz from Capitall Asset Management points out that German companies are suffering from high energy prices, which puts them at a massive competitive disadvantage compared to US companies. Companies see negative effects from the current circumstances in energy-intensive sectors, real estate, construction, construction, banks and savings banks.

The uncertain budget situation in Germany leads to a lack of planning security, which, according to IW director Michael Hüther, could lead to deindustrialization and the migration of companies from Germany. He emphasizes the need for clever solutions and reforms in order to have a positive influence on overall economic development.

The consulting firm EY reports that the total sales of the 100 largest German companies fell by nine percent, with some sectors recording a significant decline in sales. The automotive industry, which has been a growth driver, is showing signs of slowing down.

Overall, no rapid jumps in growth are expected for 2024, as global political uncertainties and wars lead to considerable uncertainty among companies and the population. This could have a negative impact on the market and the financial industry. It is important that politicians take measures to create better conditions for companies and reduce uncertainty.