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Hubertus Bardt / Michael Grömling IW-Trends No. 2 7. May 2020 No Abrupt End to the Corona Shock: How German Companies Assess the Future of the Economy

The corona pandemic is likely to lead to the most severe economic slump in Germany since the second world war.

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How German Companies Assess the Future of the Economy
Hubertus Bardt / Michael Grömling IW-Trends No. 2 7. May 2020

No Abrupt End to the Corona Shock: How German Companies Assess the Future of the Economy

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

The corona pandemic is likely to lead to the most severe economic slump in Germany since the second world war.

The present study exploits the regular business survey conducted by the German Economic Institute (IW) to provide guidance on the extent of the operational difficulties companies are currently experiencing and how these impediments are changing. Every week since the beginning of March 2020, companies in all major industries have been asked for an assessment of their situation with a view to identifying any sectoral variation in where the burden falls. Information is also collected on the causes of disruption, i.e. the multiple supply and demand shocks affecting production. According to the ‘corona fever curve’ issued weekly on the basis of the IW survey, two thirds of the responding companies in Germany are currently experiencing severe difficulties as a result of the pandemic. This burden has decreased somewhat, especially in the service sector, perhaps as a result of the concurrent relaxation of restrictions. In contrast to the 2009 financial crisis, the pandemic has affected manufacturing and service industries equally from the beginning. The fact that there is as yet little difference between companies’ short and medium-term expectations suggests that the corona crisis is casting a long shadow over the German economy. While the decline in domestic demand has now assumed considerable significance, a lack of inputs from abroad has become a pressing problem on the supply side.

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How German Companies Assess the Future of the Economy
Hubertus Bardt / Michael Grömling IW-Trends No. 2 7. May 2020

Hubertus Bardt / Michael Grömling: Kein schnelles Ende des Corona-Schocks – Ökonomische Einschätzungen deutscher Unternehmen

IW-Trends

German Economic Institute (IW) German Economic Institute (IW)

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Die Altstadt von Jerusalem
Galina Kolev-Schaefer / Thomas Obst / Thomas Puls IW-Report No. 1 2. January 2024

Effects of the Middle East conflict on the German economy

Beyond the humanitarian crisis associated with the geopolitical conflict in Israel, which affects millions of human lives, the Middle East conflict also leaves lasting marks on economic activity not only in the affected region, but also in Germany and the ...

IW

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Klaus-Heiner Röhl / Gerit Vogt IW-Trends No. 4 5. December 2023

Corporate Insolvencies on the Increase

After a prolonged decline, the number of corporate insolvencies has begun to rise again. The slight increase in 2022 could be interpreted as a step towards normalisation after the sharp drop experienced during the 2020/21 Covid19 pandemic.

IW

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