Germany's recovery from COVID-19 crisis is not strong enough - DIHK

The survey of 28,000 firms across all sectors showed that 58% companies saw rising prices as a business risk

  
The financial district with the headquarters of Germany's largest business bank, Deutsche Bank (C), is photographed on early evening in Frankfurt, Germany, January 29, 2019.

The financial district with the headquarters of Germany's largest business bank, Deutsche Bank (C), is photographed on early evening in Frankfurt, Germany, January 29, 2019.

REUTERS/Kai Pfaffenbach

German Chambers of Industry and Commerce (DIHK) on Thursday cut its growth forecast for Europe's biggest economy to 2.3% from the 3.0% it had predicted in early summer, due to rising energy and raw material prices.

The survey of 28,000 firms across all sectors showed that 58% companies saw rising prices as a business risk, compared to 42% in DIHK's previous poll.

Skilled workers shortage and climate protection issues are also hurdles for companies, DIHK added.

"We will hardly reach the pre-crisis level before the end of next year," DIHK managing director Martin Wansleben said, adding that there was even less scope for steady investment-driven growth.

"Politicians must now do everything they can to make Germany an attractive investment location again," Wansleben said.

(Reporting by Christian Kraemer; Writing by Zuzanna Szymanska; Editing by Riham Alkousaa)


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