The DIHK Chamber of Commerce announced on Monday that the German economy has remained resilient despite difficult economic conditions, but growth is expected to continue slowing down this year. The DIHK board member Ilya Nosnagel presented the report in Berlin and highlighted that there are still no signs of a broader economic recovery. Furthermore, a DIHK survey of 21,000 German companies revealed that the outlook for the next 12 months remains bleak, with only 34% of companies rating their current situation as good. Nosnagel called for a new stimulus for private investment and infrastructure development to strengthen the domestic economy.
Businesses still rate energy and raw material prices as their top business risks, despite a slight decrease in the trend. Also, labor costs have become another concern due to rising inflation and a shortage of skilled workers, with 53% of surveyed companies citing it as a business risk. The DIHK concluded that the German economy lacks momentum, and the global economy and domestic demand are not providing any impetus. Therefore, urgent measures are needed to stimulate economic growth and development.
Overall, the resilience of German businesses has been impressive, despite soaring energy prices, rising interest rates, and the war in Ukraine. However, the DIHK survey highlights the pessimistic outlook for the next 12 months, and urgent measures are needed to improve the situation.