The main employers’ associations in the German economy see many risks to the economy.
The coronavirus crisis is severely hampering economic growth, the President of the German Chamber of Commerce and Industry (DIHK), Peter Adrian, told the German news agency (dpa), according to Handelsblatt.
The President of the Federal Association of German Industry (BDI), Siegfried Russwurm, told dpa that the issue of material shortages will concern industry and consumers for a long time.
Persistent supply-side problems with raw materials have hampered German and European economic recovery.
Improvement is not yet on the horizon. In addition, there is further development of the pandemic, says Russwurm. “The rate at which the new variant of the Omikron virus is spreading around the world is very worrying. This massively increases the risks to the global economy this winter. The higher the vaccination rate, the greater the chance of normalcy and better for the economy “.
Adrian from the German Chamber of Commerce and Industry (DIHK) said: “According to our calculations, the coronavirus cost Germany in the years 2020 and 2021 together almost 400 billion euros in economic production. In purely mathematical terms, ie almost 5,000 “Unfortunately, at the moment it does not seem that we can quickly catch up with the new year.”
Based on feedback from member companies, DIHK was already more cautious in its assessment of 2022 than other entities in the fall. And this “because there are clear damping effects. These are not just related to the coronavirus. What also worries us right now is inflation, the sharp rise in energy and raw material costs and the breakdown of supply chains. There is a problem, a lot they are interconnected. ”
The President of BDI. Russwurm considers that the situation in the economic sectors is heterogeneous. Some sectors have huge problems.
A crucial question for German industry is the sale of capital goods. “It’s one of the strengths of German industry to make capital goods for the world. Psychology always plays an important role: So customers expect good work for themselves and are brave enough to invest in new machines and new systems – or they are more careful;”.
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
