The majority of the surveyed firms see only a short-term effect on the economy in 2007 from the additional financial burdens that consumers will experience (increase in VAT and insurance tax, reduction of the mileage allowance for commuters, halving of the tax-free saving limit). 50 percent of the surveyed firms expect that the economic recovery will continue during the course of the year after a brief slowdown in the initial months. Only 25% anticipate that this will end the upswing. Exports will continue as the main stimulus of the economy, despite the weakening world economy and the strong euro. Almost two thirds of exporters expect unchanged or even expanding export business. This optimism in the economy is also reflected in the investment plans: 39 percent of the firms intend to increase investments in 2007, 46 percent will maintain present levels and only 15 percent plan reductions. The top investment motives are capacity extension and replacements (54 percent of the firms for both motives); rationalisation investments are planned by 30 percent. The employment situation will continue to improve in 2007, according to the surveyed managers. 29 percent of the firms plan to take on additional staff. Only 18 percent plan to resort to part-time or temporary staff. Most of the growth in employment (83 percent) will be for jobs will full social insurance coverage. At the same time, the firms also see risks for the economic expansion in 2007. The main risks are high wage settlements and the rising oil price. Somewhat weaker risks are rising interest rates. A stronger euro and a weaker international economy play a weaker role, on average.
Size range (employed) (PDF, 16 KB, in German)
Economic Sectors (PDF, 20 KB, in German)
Ifo Manager Survey Introduction and previous releases (since 2005)
Business Cycle Analyses and Surveys
Phone: +49(0)89/9224-1229 Fax: +49(0)89/9224-1463
RSS