The energy crisis affects almost all branches of the German economy. About 82% of the 24,000 businesses surveyed view energy and raw material prices as a huge business risk and threat to business, according to the survey made by the Association of German Chambers of Commerce and Industry (Deutsche Industrie- und Handelskammer, DIHK).
According to DIHK, more than half of the companies expect a business setback over the next 12 months.
DIHK forecasts the German economy to grow by just 1.2% in 2022 and then shrink by about 3% in 2023. The German government’s latest forecast suggests growth of 1.4% this year and a decline of 0.4% next year.
Many companies are considering shifting production to other countries. In particular, 17% of companies in the automotive industry consider this option. According to DIHK experts, the United States is currently the most attractive relocation destination.
Source: REUTERS