Germany’s economy continues to tumble, with the Ifo Employment Barometer falling to its lowest level in four years, matching the coronavirus low of 2020. Meanwhile, bankruptcies are growing by double digits
Germany’s economic crisis is defined by a lack of orders, high labor and energy costs, and high regulation, which has led companies to cut staff and delay hiring, leading to the Munich-based Ifo indicator to fall to 92.4 in December, after hitting 93.3 in November. The data used is gathered from a survey of managers across Germany.
“Fewer and fewer companies are adding staff,” said Klaus Wohlrabe, who leads Ifo surveys. “In contrast, the proportion of companies that want to cut jobs is increasing. Almost all sectors are considering job cuts.”
🇩🇪 Germany's economy is in dire straits with national elections just two months away.
The Christian Democratic Union (CDU) leader, Friedrich Merz, notes that under Scholz, the German economy achieved a new milestone: 2 years in a row of recession. pic.twitter.com/WTGUSn9gRv
— Remix News & Views (@RMXnews) December 19, 2024In particular, the auto industry and its suppliers have been the hardest hit. However, it is not just manufacturing. Retailers are also planning to reduce staff instead of hiring.
“While tourism is hiring, personnel service providers and the hospitality industry are cutting jobs,” said Wohlrabe.
The Federal Statistical Office also announced that bankruptcies continue to rise, with the number jumping 12.6 percent in November compared to the same month last year.
The data shows that year-over-year growth rates of insolvencies have remained in the double-digit range since June 2023, with only one month serving as an exception when it was in the single digits.
🇩🇪 AfD co-leader Alice Weidel calls German Chancellor Olaf Scholz the "chancellor of decline" to his face.
🔺500,000 jobs lost since Scholz became chancellor
🔺Auto supplier ZF will cut 14,000 jobs
🔺SAP will cut 10,000
🔺Ford 4,600
🔺Bosch 3760
And the list goes on… pic.twitter.com/cxbTQ8NPOx
— Remix News & Views (@RMXnews) September 15, 2024Leading economic forecasters and even the government acknowledges that Germany will shrink for the second year in a row.
“A sustainable economic turnaround is not yet foreseeable,” reads the latest monthly report from the Federal Ministry of Economics.
Not only is economic uncertainty high due to the usual factors, but the threat of tariffs are also looming from the United States. President-elect Donald Trump is promising to hit Europe and China with tariffs as high as 25 percent, with Germany expected to suffer greatly if such tariffs are put in place.
