The Ifo Institute for Economic Research in Munich is talking about the collapse of the business climate in the German economy due to the war in Ukraine, as the relevant index fell by almost eight points compared to February.
In particular, according to Ifo, the Business Climate Index fell in March to 90.8 points from 98.5 in February, mainly due to the fall – a record 13.3 points in business expectations.
It is characteristic that the fall recorded exceeds the corresponding one that had occurred with the outbreak of the coronavirus pandemic in March 2020 (11.8 points).
In addition, companies rate their current situation as worse than it was during the pandemic and expect difficulties in the future.
In the industry the index fell at the fastest pace ever recorded, as companies completely lose their optimism and describe their prospects as “extremely uncertain”.
In the services sector there is also a significant deterioration of the climate, especially in terms of transport, while in trade the index collapsed to a record level. However, the estimates for the current situation remain almost unchanged, with a positive sign.
The climate is also declining significantly in construction, where the outlook is also pessimistic, although the majority of companies participating in the Ifo survey say they are still satisfied with their current activity.
Source: 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.
