According to the German Chamber of Commerce (DIHK) companies in Germany refrains from investing. According to the interior letter of the Managing manager of DIHK Helena Melnikov (44), only 24 percent of companies are presently planning to increase their investment while 1 3rd is trying to reduce them. Even 1 in 5 companies can't imagine expanding their production capacity. Mielnikov talks about disturbing numbers. This is about the results of the fresh economical survey that DIHK will present on Tuesday.
Location defects in Germany
Many business associations see serious disadvantages in Germany's location: advanced energy costs and taxes, excessive bureaucracy, and lengthy planning and licensing procedures. After 2 consecutive years of recession, this year the gross home product is expected to stagnate.
Uncertain US President's tariff policy Donald Trump is considered a serious risk. The fresh national government has announced a number of measures to stimulate the economy and encourage companies to increase investment again in Germany.
"Company needs courage and assurance to invest money"
As Mielnikov wrote in his letter, in order for the economy to make again, investments are primarily needed. "Our investments in equipment are inactive 10 percent lower than the levels before coronavirus. Companies request courage and assurance to invest money." The survey shows that many companies are afraid about home and abroad demand. Energy and natural materials prices as well as labour costs are besides considered as crucial barriers to investment.
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