Business risks remain the same
“Bad mood among companies is becoming more entrenched”
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The mood among German entrepreneurs remains bad. According to a survey by the Chamber of Commerce and Industry, a good third have negative business expectations for the coming year. The problems are manifold. But there is a glimmer of hope.
The bad mood among entrepreneurs in Germany continues in view of a variety of problems. Business expectations, which were severely dampened by the energy crisis, remain at a low level, according to the economic survey presented in Berlin by the German Chamber of Industry and Commerce (DIHK). The only bright spot is in export expectations due to the improved situation in the global economy.
As in the previous year, a good third of entrepreneurs currently have negative business expectations for the next twelve months, the DIHK explained. Only one in seven expects an improvement. 29 percent of those surveyed see the current business situation as positive, while 21 percent rated it as bad. Compared to the previous year, the mood among companies did not drop any further, but it is now significantly worse than the long-term average for the second year in a row. “The bad mood among companies is becoming more entrenched,” says the DIHK.
Framework conditions as a business risk
The most significant business risks have also largely remained the same: high energy and raw material prices, the economic policy framework, the shortage of skilled workers, domestic demand and high labor costs were each mentioned by more than half of those surveyed. The biggest change was in the framework conditions: “It is worrying that almost three out of five companies now see the economic policy framework as a business risk,” explained DIHK General Manager Martin Wansleben.
A total of more than 27,000 companies “from all sectors and regions” were surveyed. More than 7,600 of them made use of the option to provide free-text answers on the economic policy framework, explained the DIHK. The keyword most frequently mentioned by far was “bureaucracy”. However, the mood has improved among internationally active companies with more than 1,000 employees. “They are benefiting from significantly improved export expectations, given the surprisingly resilient development of the global economy,” explained the DIHK experts. Overall, export expectations are therefore brightening, but significantly less so among smaller companies.
As a result of the information, the DIHK is forecasting “a further decline in economic output of 0.5 percent for 2024,” explained Wansleben. It would be the second time since the Second World War that economic output has fallen for two years in a row. “This is a clear alarm signal that Germany and Europe must take seriously,” warned the DIHK managing director.
