economic situation
DIHK also expects zero growth in 2025
Shortly before the coalition’s separate economic summits, the DIHK is presenting an economic survey. The result: The downward trend in the German economy has not stopped – not by a long shot.
The German Chamber of Commerce and Industry does not expect the economy to recover in the coming year either. On the contrary: the feedback from companies gave rise to fears that things could get even worse, said DIHK Managing Director Martin Wansleben at the presentation of a new economic survey in Berlin. After stagnation in the current year, the DIHK is only expecting zero growth for the coming year. This would be the third year in a row without any real growth in gross domestic product.
The DIHK is therefore significantly more pessimistic than the federal government. This expects gross domestic product to increase by 1.1 percent next year. On the one hand, she hopes that private consumption will pick up again and more industrial products will be bought abroad. Economics Minister Robert Habeck (Greens) also expects positive effects from a planned but not yet implemented growth initiative.
The DIHK figures come shortly before separate traffic light economic summits. Chancellor Olaf Scholz (SPD) will meet with representatives of industrial associations, unions and large companies in the afternoon. Economics Minister Robert Habeck (Greens) and Finance Minister Christian Lindner are not invited to the Chancellery. Lindner’s FDP parliamentary group is holding its own economic summit in the Reichstag this morning, which will also take into account crafts and medium-sized businesses. Wansleben also takes part.
DIHK: Dramatic numbers
According to a survey of around 25,000 companies in Germany, the business situation has continued to deteriorate. Only 26 percent of companies report a good situation. The balance of positive and negative assessments of the situation fell to just one point, after five points in early summer.
The proportion of companies with negative business expectations rose to 31 percent, after 26 percent in the previous survey. The most common business risks are weak domestic demand, followed by economic policy conditions and labor costs.
The numbers are dramatic, says Wansleben. “The negative development must be stopped. To do this, we need quick and targeted measures that, above all, improve the economic conditions.”
Germany is lagging behind
Germany is losing touch internationally. “Too little investment, too much bureaucracy, too high location costs – the German economy is stuck,” said Wansleben. “We are not only dealing with an economic crisis, but also with a stubborn structural crisis in Germany.” The situation is worst in industry. Signs of deindustrialization were becoming more apparent. “The poor investments show that the industrial value creation base is declining.”
According to the DIHK, motor vehicle manufacturing has seen a particularly dramatic downturn in business. Plans from Volkswagen are currently making headlines. According to the works council in Germany, the car manufacturer wants to close at least three plants and cut tens of thousands of jobs.
dpa
Source: Stern
