Geopolitical tensions are leaving increasingly clear marks on the German economy. According to a study by the German Economic Institute (IW Cologne), which was obtained by the Süddeutsche Zeitung, almost all of the 18 regularly surveyed risk factors for companies are gaining in importance. Geopolitical risks are rising particularly sharply, for example due to the tariffs imposed by US Donald Trump or the Iran war.
Pressure on companies is also growing at home. The once strong industry in Germany is shrinking, jobs are disappearing, and more and more companies are filing for insolvency. The study shows that the problems are not only coming from outside but are also homegrown. The authors of the study cite the shortage of skilled workers and bureaucratic hurdles as key domestic issues.
The results of the IW study paint a bleak picture for the German economy. Key sectors such as automotive, chemicals, and mechanical engineering are particularly affected. These sectors, which long served as the backbone of German export industry, are suffering from global uncertainties and structural problems at home.
Companies are demanding more planning security and relief from politicians. The IW Cologne study underscores that risks for corporate business could continue to increase in the coming months if geopolitical tensions do not ease.
Source: www.sueddeutsche.de
