Germany: DIHK industry association reports worst business situation since 1985

Despite the relaxation of corona restrictions and political aids, many companies remain deeply insecure and afraid of the future. According to a survey by the German Chamber of Industry and Commerce (DIHK) among 8,500 companies in all industries and regions, half of the companies expect a return to normality in the coming year at the earliest. Only a third expect normalization this year.

"This shows that the way back for the economy will be long and hard," said DIHK CEO Martin Wansleben. "As important as bridging aids and economic stimulus packages are. Nothing is more important for companies than the chance to be able to generate sales again on the market." Lockdown ends – but the situation of the companies remains precarious. According to the survey, four out of five companies continue to expect the whole Year a decline in sales. In the DIHK economic radar, the business situation has dropped to the lowest level since the surveys began in 1985. "These figures show the current great uncertainty among our companies," said Wansleben. "They are very concerned that their business will not get going again quickly, even though the shutdown in Germany and other partner countries has been eased."

From the DIHK's perspective, the survey confirms the forecast of a ten percent economic slump this year. Exports are even expected to decline by 15 percent. In Germany, every second job is dependent on exports. It is therefore important for Europe to agree on an effective restart as soon as possible so that the internal market can start, said Wansleben. Open borders and the free movement of goods and people are "indispensable so that our economy can recover," said Wansleben. "That is why it is so important from an economic perspective that the corona virus is overcome worldwide."
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