According to the Ifo Institute for Economic Research, the German economy is robust despite fears of inflation, material shortages and the war in Ukraine. There are currently no signs of a recession. Difficulties are caused by rising prices and deliveries.
“Fear of inflation weighs on trade. There is concern that consumers will be less willing to buy,” Ifo expert Klaus Wohlrabe said in an interview with Reuters. In addition, 80 percent of retailers would not get all the products ordered. According to Ifo, the mood in industry and construction has also been clouded. “Because China’s zero-corona policy and war-related supply problems are likely to continue to slow down the supply of German industry from abroad,” said Commerzbank chief economist Jörg Krämer. In addition, there are rising raw material prices and greater uncertainty among companies and consumers due to the war in Ukraine.
trust service providers
Some service companies, manufacturing companies and service companies are increasingly confident. In the services sector, the location index last rose more in June 2021. However, chief economist Alexander Krüger of the private bank Hauck Aufhäuser Lampe is not exactly optimistic about the future: “The question mark behind an economy that will strengthen in the second half of 2022 attract, gets bigger.”
Little economic growth
All in all, the German economy should still grow in 2022, but only by about two percent, many economists estimate. Other forecasts assume a meager increase of one to one and a half percent.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
