Despite the extension of the lockdown, Germany’s company managers are optimistic about the future. In the meantime, it has been confirmed how much industrial production slumped last year.
Photo series with 12 pictures
The Ifo business climate index rose to 92.4 points from 90.3 points in January, as the Munich economic research institute announced on Monday for its survey of 9,000 managers.
The German economy is robust despite the lockdown, especially because of the strong industrial activity,” said Ifo President Clemens Fuest. Managers judged the outlook for their businesses and their location to be more favorable than recently.
Due to the corona pandemic, the German economy had collapsed by five percent in 2020 as it had not since the financial crisis and at the same time shrank for the first time in eleven years. German industry suffered particularly badly in 2020: because of the pandemic, companies produced 10.8 percent less than in 2019, according to the Federal Statistical Office.
Economic prospects for 2021 much better
During the first phase of the corona restrictions in April and May, it collapsed 29.7 and 23.4 percent, respectively, after which it began to recover. In December, the backlog in industrial production compared to the same month last year was only 1.5 percent.
Economists believe that the economy will see a noticeable improvement again this year. which, however, depends heavily on the further course of the pandemic and on the success of the vaccinations. For the current first quarter of 2021, some experts are expecting another damper for the economy due to the current lockdown in gastronomy and retail.
[ source link ]
Sentiment German economy increasing significantly