According to the Munich Institute, companies in Germany are expecting tough times. Expectations are particularly clouded.
The mood in the German economy has deteriorated sharply in view of the Ukraine war. The Ifo business climate, Germany’s most important economic barometer, fell from February to March by 7.7 points to 90.8 points, as reported by the Ifo Institute in Munich.
Analysts had expected a downturn, but with a more moderate average of 94.2 points. “The mood in the German economy has collapsed,” commented Ifo President Clemens Fuest. Companies in Germany were expecting hard times. Companies’ expectations clouded over particularly badly, while the current situation deteriorated more moderately. The business climate clouded over in all areas under review. The Ifo Institute said it had fallen more than ever in the manufacturing sector.
“In view of the consequences of the war, the deterioration in sentiment comes as no surprise,” said Ralfcircul, an analyst at Landesbank Hessen-Thüringen. According to Thomas Gitzel, chief economist at VP Bank, the message is clear: the German economy is very likely to slip into recession. The German economy was put in its place by the sharp rise in energy costs, the worsening supply chain problems and the economic consequences of the corona pandemic that have still not been digested.
“How things can change in just a month,” commented Jörg Zeuner, chief economist at Union Investment. After confidence spread in January and February, pessimism now prevails. “The majority of companies are looking to the next few months with a great deal of skepticism. You can hardly blame them given the latest developments.”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
