Wednesday, March 22, 2023

German firms doubt good business conditions will last

German firms doubt good business conditions will last

FRANKFURT - Many German companies doubt the good conditions in Europe's largest economy will last as they fear disruption from new technologies, the head of the Munich-based Ifo economic institute told the Suedkurier newspaper.

German business morale was buoyant in February, Ifo's survey of business sentiment showed. Ifo is due to release the results of the March survey on Monday and no change is expected in the reading, supporting expectations for a robust start to 2017.

Yet Ifo chief Clemens Fuest said businesses saw disruption on the horizon.

"Many firms doubt whether the current good situation will last," Fuest told the Suedkurier, adding that businesses believed new technologies like electric cars and digitalisation would lead to "structural upheaval".

He said the German economy was growing well and that Ifo expects it to expand by 1.5 percent in real terms this year. -Reuters