The Chamber of Industry and Commerce in Germany announced the detection of a great deal of uncertainty among the German business sector.
In statements to the German news agency, Chamber President Peter Adrian said, “Germany is in a recession… We are among the few countries whose economic performance has returned to a level lower than the pre-covid level… This is a warning sign”.
Adrian believed there were still no signs of a broad recovery.
Adrian saw that the situation in the German economy in general is difficult, noting that morale is very bad sometimes, especially among medium-sized companies, and there is a great deal of reluctance to invest.
Adrian continued, “The issue is primarily related to the economic situation going downhill, therefore I don’t dare to give predictions about when the economic situation will return to the upward trend again… Perhaps we can be happy when we see a zero rate of economic growth at the end of the year rather than a negative number… This means stagnation at best… But we need to make massive progress to keep our prosperity”.
The Chamber of Industry and Commerce in Germany announced that it detected a great deal of uncertainty in the German business sector.
Germany’s GDP contracted in two consecutive quarters, which experts call a technical recession, as Europe’s largest economy contracted in the last quarter of 2022 and then in the first quarter of this year.
The inflation rate remains at a high level, but experts expect a gradual decline in prices.
On the outlook, Adrian said, “There are still no signs of a broad-based recovery… Perhaps we will witness a significant decline in the construction industry in the second half of the year”.
He attributed this primarily to the failure of new construction due to high interest rates and the high cost of building materials.
He explained that this would have negative repercussions for the economy as a whole.
“There should have been enough funds for the investments,” Adrian added.
Although the capitalization of the companies is still good, the companies are investing cautiously because the uncertainty is very high.
Other sectors of our economy are less optimistic that investments will pay off due to high costs and sometimes-conflicting regulations in Germany as a corporate headquarters.