IW study: majority of economic sectors pessimistic about the new year
"Rarely has the situation been as bleak as it is now, and rarely has the forecast been so pessimistic," summarizes the authors of the study presented on Wednesday. According to the study, energy-intensive sectors in particular, such as foundries, the ceramics industry, the leather industry and plastics processing, are expecting a significant deterioration. The real estate, construction and construction industry as well as banks and savings banks are also pessimistic in view of the high interest rates.
"The German economy is suffering across the board because it cannot plan," explained IW Director Michael Hüther. The "budget disaster" in the governing coalition shows how serious the situation is. He warned of deindustrialization and an increasing exodus of companies from Germany and called for a reform of the debt brake, among other things.
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The Institute of the German Economy (IW) looks at a majority of economic sectors showing pessimism towards the new year, as revealed in their study. This pessimism extends beyond the energy-intensive sectors, including real estate, construction, construction industry, banks, and savings banks, due to high interest rates. The situation is so dire that it's affecting the entire German economy, making it challenging for industries to plan. IW Director Michael Hüther highlighted the "budget disaster" in the governing coalition as a sign of the gravity of the situation. He cautioned about deindustrialization, an increasing exodus of companies from Germany, and suggested necessary reforms, such as revising the debt brake.
Source: www.stern.de
