Companies in Germany are Significantly Pessimistic

Companies in Germany are Significantly Pessimistic Companies in Germany are significantly pessimistic, according to the Ifo Institute's statement. Confidence in the economic outlook is losing as the increase in cases causes new restrictions in the coronavirus outbreak. In Germany, the business world is losing confidence in the economic outlook after the increasing number of cases in the coronavirus epidemic brings new restrictions. The Ifo Institute's business prospects indicator dropped from 94.7 to 91.5 in November, steeper than economists' forecast. The outlook is very bad, especially in the service sector, where businesses are temporarily closed. On the other hand, restrictions caused by the epidemic are also driving businesses in the service sector, where their profits are negatively affected, into bankruptcy. According to data shared by Ifo, more than 70 percent of companies operating in the broad service sector, including accommodation, travel and food and beverages, fear going bankrupt this month, while about 20 percent are worried that they will survive this month. On Wednesday, the outlook in Germany could be worse. German Chancellor Angela Merkel and regional leaders will decide whether to tighten the measures. However, it will be decided whether the coronavirus measures should be extended to cover most of the next holiday season. It is stated that the rapid recovery in Europe's largest economy after the removal of quarantines in the first half of 2020 is short-lived. Also, private consumption increased by 10.8 percent in the third quarter, according to data shared on Tuesday. Investments increased 3.6 percent. The economy grew 8.5 percent after contracting almost 10 percent in the three months to June. Economists, making evaluations on the subject, state that the economy may not grow in the current quarter, looking at the new restrictions. The Bundesbank mentions that there is a risk that the economy may shrink.