Location conditions in Germany as a business risk: Financial experts warn of bureaucracy and low investments
Companies see the location conditions in Germany as an increasingly greater business risk. According to a survey by the German Chamber of Commerce and Industry (DIHK), 51 percent of companies are currently complaining about the economic policy framework, compared to 43 percent previously. The survey was conducted among 24,000 companies from various industries and regions. The main reason given for the negative assessments was bureaucracy and increased requirements and reporting requirements. The number of companies planning additional investments has fallen from 28 percent to 24 percent. 31 percent of companies say they want to reduce their investments, although this figure is even higher in industry. …

Location conditions in Germany as a business risk: Financial experts warn of bureaucracy and low investments
According to the DIHK forecast, the German economy is expected to shrink by minus 0.5 percent this year, whereas stagnation was still expected in the spring. No significant recovery is expected for 2024 either. The DIHK general manager Martin Wansleben has so far seen no signs of a self-sustaining upswing. The inflation rate is expected to fall from 6.2 percent this year to 3.0 percent in 2024.
High energy and raw material prices continue to be cited as the greatest business risk, although the trend is decreasing. The shortage of skilled workers and moderate domestic demand also continue to be obstacles for many companies.
The negative mood among companies is also reflected in the business outlook for the next twelve months. The survey shows that 35 percent of companies expect the situation to get worse, while only 13 percent expect it to improve.
This development has the potential to impact the market and the financial industry. Companies' declining willingness to invest could lead to lower demand for financing options. At the same time, the negative business outlook could lead investors to avoid riskier investments.
Source: According to a report by www.zeit.de
Read the source article at www.zeit.de