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Covid-19 Economic Assistance In Bavaria Reached All Affected Industries
In Bavaria, Covid-19 bridging aid was received mainly by the many smaller companies with fewer than 50 employees and in those industries particularly affected by the pandemic, finds a study by the ifo commissioned by Chamber of Commerece and Industry (IHK) for Munich and Upper Bavaria.
Availability of Materials in Germany Approaching Pre-coronavirus Levels
German manufacturers hardly have to struggle with material shortages anymore. In March, 10.2% of the companies surveyed reported shortages, down from 14.6% in February. “The supply of raw materials and intermediate products has recently seen significant improvement,” notes ifo-expert Klaus Wohlrabe.
Business Climate In German Retail Improves Again
The ifo Business Climate in retail brightened further in April and rose to -14.5 points, up from -17.5 in March. Assessments of the current business situation improved significantly. Retailers’ business expectations also became somewhat more optimistic, but remain largely cautious.
Business Climate Of The Self-Employed In Germany Improved
The business climate for solo self-employed and microenterprises in Germany improved somewhat in April, climbing to -13.8 points after -15.6 in March. Dissatisfaction with current business has decreased slightly, as has skepticism regarding expectations for the next six months. The signal coming from service providers is particularly positive.
Business Climate In the German Automotive Industry On The Upswing
According to the ifo Business Survey, the indicator in March rose to -5.8 points, up from -9.9 points in February. “The German automotive industry seems to have finally emerged from its economic low in the second half of 2023 and is looking to the future with more confidence,” ifo-expert Anita Wölfl notes.
German Export Expectations Rise
Sentiment in the German export industry has turned brighter. The ifo Export Expectations rose from -1.5 in April to +0.3 points in May. “Positive and negative responses are in nearly perfect balance,” explains Klaus Wohlrabe, Head of Surveys at ifo. “The export economy is not yet developing any great momentum overall.”
EU Accession Country Workers Fill German Labor Market Gaps
Exactly 20 years after accession to the EU, approximately 820,000 workers from these ten countries are now employed in Germany. That accounts for 2.4% of the German workforce. “Contrary to the fears of many, this has not led to German workers being pushed out of the labor market,” notes Joachim Ragnitz, Managing Director of ifo Dresden.
Lack Of Orders Slows Down The German Economy
The order shortage in Germany has worsened and is an obstacle to the economy. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January. In the service sector, the proportion rose from 32.1% to 32.4%. “The lack of orders is hampering economic development in Germany,” explains Klaus Wohlrabe.
Business Climate in the German Chemical Industry Brightens
The business climate in Germany’s chemical industry improved in March, with the index rising to -10.5 points, up from minus 15.5 points in February. Especially business expectations improved sharply to -2.9 points, up from minus 14.9 points in February.
Business Climate Eastern Germany Rises a Second Time in a Row
The ifo Business Climate Index Eastern Germany rose considerably in April from 90.2 in March to 92.3 points. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they raised their business expectations substantially.
Parenthood Increases Inequality Between Women And Men In Germany
Inequality in the labor market between men and women in Germany is at its greatest when there are children involved, finds an international research group. Among 30-year-olds, mothers earn on average 70 to 80% less than fathers, whereas the difference is less than 5% for childless people of the same age.
ifo Employment Barometer Rises
The willingness among companies in Germany to hire new staff has increased slightly. The ifo Employment Barometer rose to 96.3 points in May, up from 96.0 points in April. “Demand for workers remains rather weak,” notes Klaus Wohlrabe, Head of Surveys at ifo.
ifo Business Climate Index Rises (April 2024)
Sentiment has improved at companies in Germany. The ifo Business Climate Index rose to 89.4 points in April, up from 87.9 points1 in March. This is its third consecutive rise. Companies were more satisfied with their current business. Their expectations also brightened. The economy is stabilizing, especially thanks to service providers.
Half Of Germany’s Residential Construction Companies Are Short On Orders
Residential construction in Germany is experiencing an order shortage. More than half the companies, 55.2%, in this industry reported a lack of orders in April. In March, the figure was 56.2%. “Housebuilders are looking for signs of hope,” notes Klaus Wohlrabe, “but there’s no end to the crisis in sight.”
Uncertainty Dampens The Mood Of The Self-Employed In Germany
Uncertainty among the self-employed in Germany has increased in March. Thus, the business climate for this segment has deteriorated with the index falling to -15.6 points, down from -14.6 points in February. “Contrary to the situation in the other sectors of the economy, the self-employed are experiencing increasing doubt,” explains Katrin Demmelhuber.
Work Visa Agreements Between EU And Third Countries Could Reduce Asylum Applications
The ifo Institute proposes work visa agreements between the EU and safe third countries as a way to reduce the number of asylum applications and irregular immigration. “This would enable legal and controlled immigration,” notes ifo expert Panu Poutvaara.
Germany Only In The Middle Of The Pack
Germany’s current attractiveness as a location for homegrown companies ranks only in the middle among its European peers. When asked to rate Germany’s attractiveness as a business location, the experts there awarded it 61.3 points out of a possible 100. Austria achieved 72.4 points, while Switzerland scored 72.6 points.
ifo Researcher Potrafke Critical of Germany’s Pension Package
“Freezing the pension level at 48% and suspending the sustainability factor completely ignores the realities in Germany," criticizes ifo researcher Niklas Potrafke regarding the pension package recently adopted by the German government. Demographic change requires a different pension policy.
German Export Expectations Fall
Sentiment in the German export industry has clouded over a little. The ifo Export Expectations fell to -2.0 points in April, down from -1.2 in March. “The export economy lacks momentum at present. While the global economy offers many good prospects for growth, these aren’t yet being reflected in additional orders”, explains ifo-expert Klaus Wohlrabe.