DIHK: The economy is not collapsing as much as feared

Photo: Container (via dts news agency)
Photo: Container (via dts news agency)

Berlin (dts news agency) – According to estimates by the German Chamber of Commerce and Industry (DIHK) this year, gross domestic product will not fall as much as originally expected. “For this year we are currently expecting a decline in gross domestic product of more than seven percent,” said association president Eric Schweitzer to Focus. “Hopefully that will not be quite as severe as initially feared, but it is still the biggest slump since World War II.”

The reason is that economic output is now picking up again after the slump in spring. So far, the DIHK had assumed a decline in this year’s gross domestic product of more than ten percent. The situation for the economy is nevertheless “extremely challenging,” said Schweitzer.

80 percent of the companies expected falling sales for the full year. “40 percent have serious liquidity problems and every tenth company even considers itself at risk of bankruptcy,” said the DIHK President to Focus