Not much good can be expected in the new year, says the director of the German Economic Institute (IW).
“It’s not a turnaround in the economy, rather a continuation of stagnation,” commented Michael Hüther association survey the results of which are carried out every year. Until Christmas, the institute examined 49 economic companies. 31 of them said that the situation in their industry had worsened in the past year, writes a Tagesschau.
In the past, our newspaper also wrote several times about the continuous decline of the German economy. As a result of high energy costs and declining exports, the once brilliant German economic miracle has died out, and the country’s politicians are currently searching for solutions with little success.
In the latest survey, only a few companies have a positive outlook on the coming year. The insurance sector, waste management, and the energy and water industry are mostly optimistic, but overall the mood in German industry is bad.
Unemployment is likely to increase further in 2025
The situation in the labor market is even worse. Only seven companies expect more employees in their sector in the coming year. More than half of the surveyed companies expect a further decrease in employment.
The German Economic Institute (IW) expects an average of 2.9 million unemployed in the coming year. The last time Germany’s unemployment rate was this high was about ten years ago.
This will be the third year in a row that the German economy has not grown
IW’s economic forecast expects growth of only 0.1 percent by 2025, so this would be the third year in a row without significant economic growth. In 2023, the German economy shrank by 0.3 percent, and the gross domestic product may decline further this year.
According to the director of IW, this trend is not irreversible. According to the hopes of the economic actors, the imminent change of government in Germany may cause a positive turn, but the basic problem is the lack of investments. The German Economic Institute calls for more public investment in infrastructure and greater tax incentives for companies so that they can invest more. And the economy needs lower energy prices, said Hüther. These could be achieved by reducing network charges.
Source: magyarnemzet.hu
