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DIHK: Companies hold back investments
The German economy is stuck in an economic sturdy. Uncertainty shapes the location. This has consequences, as a survey by the German Chamber of Commerce and Industry shows.
According to the German Chamber of Commerce and Industry (DIHK), companies in Germany are holding back with investments. Only 24 percent of the companies are currently planning with increased investments, a third decreases investments, according to an internal letter from DIHK general manager Helena Melnikov.
Not even every fifth company could imagine expanding their own capacities. Melnikov speaks of sobering numbers. It refers to the results of a new economic survey among companies that the DIHK presents on Tuesday.
Location disadvantages in Germany
Many business associations see large location disadvantages in Germany: high energy costs and taxes, too much bureaucracy as well as long planning and approval procedures. After two years of recession in a row, the gross domestic product stagnated for the current year.
The unconquestable customs policy of US President Donald Trump is a great risk. The new federal government has announced numerous measures so that the economy is stimulated and companies are investing more in Germany again.
“Companies have to dare to take money in hand”
In order for the economy to grow again, investments are mainly needed, said Melnikov in the letter. “Our equipment investments are still ten percent below the pre-corona level. Companies have to dare and trust to take money into their hands.”
According to the survey, many companies are concerned about domestic and foreign demand. Energy and raw material prices and labor costs are also seen as considerable investment obstacles.
dpa
Source: Stern
