Gloom settles in over Germany's economy as businesses remain downbeat about coming months
Germany's businesses remain mired in pessimism despite a small uptick in the latest survey, as Europe’s largest economy struggles with shortages of skilled labor, slower global trade, and political squabbling
FRANKFURT, Germany (AP) — Germany's businesses remain mired in pessimism, a key survey showed Friday, as Europe's largest economy struggles with shortages of skilled labor, slower global trade, high interest rates and political squabbling.
The closely watched Ifo institute survey of business sentiment rose only slightly to 85.5 points in February from 85.2 points in January due to “slightly less pessimistic expectations,” the institute said in an accompanying statement.
“The German economy is stabilizing at a low level,” the institute said.
The survey results follow a sharp downgrade of the government's expectations for growth this year, to only 0.2%, from 1.3% in the previous forecast. Germany's economy shrank 0.3% in 2023, the worst performance by a major economy and a reversal of years of economic success as an export champion.
