According to a survey, medium-sized businesses fear a rapid economic downturn in the coming year.
Eight out of ten medium-sized companies (80 percent) expect the German economy to shrink more quickly in 2025, according to a survey by the Federal Association of Medium-Sized Businesses (BVMW).
A good 58 percent of the medium-sized companies surveyed said that they expected an economic downturn. One in five medium-sized businesses is preparing for an economic depression in the next twelve months.
According to the survey, 40 percent of medium-sized entrepreneurs recorded a loss in sales in the year that ended. 40 percent of those surveyed also said they wanted to invest less in the new year than in the previous year.
The shortage of skilled workers and workers is particularly worrying
In addition to the general economic situation, medium-sized companies are particularly concerned about the shortage of skilled workers and workers: 62 percent of medium-sized companies fear that they will not be able to fill available training positions in the coming year.
“Not only our economy, but also the confidence in improvement have been shaken by the political back and forth of the last few years,” says Christoph Ahlhaus, federal managing director of the association. “Anyone who wants to bear political responsibility in Germany must explain conclusively how our economy can move forward again.”
BVMW chief economist Hans-Jürgen Völz told the German Press Agency that it is important to implement a reform policy in all branches of social insurance, in the areas of bureaucracy reduction, energy costs, labor market and social policy, so that companies can regain hope and also invest in Germany.
“The key is to focus on medium-sized companies, the 3.5 million German medium-sized companies, and not on large companies and corporations that can choose their locations worldwide,” said Völz. “It is important that well-meaning Sunday speeches, where the praises of the middle class are sung, are finally followed by corresponding actions in politics from Monday to Friday in Parliament.” The middle class must do well because they train, create jobs and a lot be innovative.
According to its own information, the association surveyed 1,273 participants online between December 17th and December 27th. (dpa)