German economy, firms are merely struggling to survive, says DIHK Chief

Emmanuel Thomas, DPA, Sunday, July 02, 2023

BERLIN – The German Chamber of Industry and Commerce (DIHK) sees great uncertainty in the German economy and no signs of a broad-based upswing for the time being.

The German Chamber of Industry and Commerce (DIHK) sees great uncertainty in the German economy and no signs of a broad-based upswing for the time being.

“Germany is in a recession. We are one of the few countries in Europe that are back below pre-coronavirus levels in economic performance. This is an alarm signal,” DIHK chief Peter Adrian told dpa.

Business associations such as the DIHK have long been calling for more help from the government to stimulate growth, a reduction in bureaucracy and faster planning and approval procedures.

The situation of the German economy is difficult overall, Adrian said, pointing to struggles particularly among medium-sized companies. “There is a great reluctance to invest.”

He said he would expect a willingness to invest and that companies’ unwillingness to do so was worrying.

On the outlook, he said, “signs of a broad-based upswing continue to be lacking.”

Pointing to higher interest rates and the high cost of building materials, he predicted a “massive slump in the construction industry in the second half of the year.” This will have negative consequences for the entire economy, Adrian added.