According to the Berlin DIW, the sluggish German economy is not on the verge of a thorough recovery. The economic barometer of the German Institute for Economic Research (DIW) was unchanged at 90.3 points in August compared to July, as the researchers announced on Wednesday. Since May, the value has remained well below the neutral 100-point mark, which indicates average growth.
“There is still no clear upturn in sight for the German economy,” said Timm Bönke, co-head of the DIW department for forecasting and economic policy. According to Bönke, the economy stagnated in the second quarter after the winter recession and is only likely to grow in the second half of the year. According to his colleague Geraldine Dany-Knedlik, the economic downturn is affecting all areas. The export economy is suffering above all from the weakening world economy, while private consumption is being slowed down by inflation, which is only gradually falling in this country, and a wait-and-see attitude on the part of households.
German industry is the main concern. Subdued demand from Germany and abroad and higher interest rates weighed heavily on the mood and business expectations. Since the industrial economy is weakening worldwide, no recovery is to be expected in the near future. “Companies are likely to hold back on investments for a while,” said DIW economics expert Laura Pagenhardt.