ifo Media Center

ifo Economic Forecast 2020 Update: Economic Contraction of 6.6 Percent in Germany Most Likely (28.5.2020)

The German economy will probably shrink by 6.6 percent this year and then grow from this low level by 10.2 percent next year, according to the updated ifo Economic Forecast for 2020/2021. “This is based on our evaluation of the ifo survey conducted among companies in May. On average, participants consider it most likely that their own business situation will return to normal in nine months,” says Timo Wollmershaeuser, Head of Forecasts at ifo.

ifo Employment Barometer Rises Slightly (May 2020)

German companies are still expecting a decline in employee numbers. Nevertheless, the ifo Employment Barometer rose to 88.3 points in May after measuring 86.3 points in April. But despite this increase, the number of layoffs will again exceed that of hires, which means that unemployment in Germany is set to rise further.

ifo Export Expectations Rose Considerably (May 2020)

After a catastrophic April, sentiment among German exporters has recovered somewhat. In May, the ifo Export Expectations for manufacturing rose from minus 50.2 points to minus 26.9 points. Although this sharp increase is unprecedented, companies are still far from optimistic. However, the German export industry does see a silver lining on the horizon.

ifo Business Climate Index Recovers (May 2020)

Sentiment among German companies has recovered somewhat after a catastrophic few months. The ifo Business Climate Index rose from 74.2 points in April to 79.5 points in May. Even though companies once again assessed their current situation as slightly worse, their expectations for the coming months improved considerably. Nevertheless, many companies are still pessimistic about their business. The gradual easing of the lockdown offers a glimmer of hope.

Mood among Saxony’s Companies Continues to Plummet (April 2020)

Sentiment among companies in Saxony continued to nosedive in April, as the ifo Business Climate Index for Saxony plunged from 89.8 to 78.0 points. This is in line with the strong slump in eastern Germany and across Germany as a whole. The companies surveyed lowered their assessments of the current situation and business expectations to an unprecedented extent – the coronavirus crisis has hit all areas of Saxony’s economy.

ifo Business Climate Eastern Germany: Historic Slump – No End in Sight (April 2020)

ifo Employment Barometer Plummets to Historic Low (April 2020)

The personnel departments of German companies are preparing for layoffs. The ifo Employment Barometer plummeted to 86.3 points in April after measuring 93.4 points in March. This represents a historic low. There has never been such a marked decline in the barometer itself, which will correspond to a rise in unemployment in Germany.

ifo Economic Forecast Spring 2020 Update: German Economic Output Collapses by 16% during Coronavirus Shutdown

During the coronavirus shutdown, economic output in Germany has collapsed by 16%. This is the result of an evaluation of April’s ifo surveys among some 8,800 companies across almost all industries. The estimate was based on the companies’ reported capacity utilization in January and in April as well as the actual and expected difference in sales in the first and second quarters.

ifo Export Expectations in Free Fall (April 2020)

Sentiment among German exporters is in free fall. In April, the ifo Export Expectations for manufacturing plunged from minus 19.0 points to minus 50.0 points. This is the lowest value ever measured, and the severity of the decline is also unprecedented. The coronavirus pandemic is leaving deep scars on export markets.

ifo Business Climate Index Plunges to Historic Low (April 2020)

Sentiment at German companies is catastrophic. The ifo Business Climate Index crashed from 85.9 points  in March to 74.3 points in April. This is the lowest value ever recorded, and never before has the index fallen so drastically. This is primarily due to the massive deterioration in the current situation. Companies have never been so pessimistic about the coming months. The coronavirus crisis is striking the German economy with full fury.

Sustainability at German Companies (1st Quarter 2020)

Sustainability: a buzzword encountered frequently in social and public discourse. In the first quarter of 2020, on behalf of Randstad Germany, the ifo Institute conducted a survey of just under 800 German HR managers. The goal was to investigate how German companies understand “sustainability” and how they put it into practice. Overall, the results of the survey show that the majority of the companies already seem to be investing more time and effort in the topic of sustainability. The focus here is usually on environmental protection issues, but sustainability efforts have also already found their way into the HR domain. It is striking, however, that companies’ commitment is driven more by stakeholder motives or a sense of social responsibility than by legal requirements, which play only a subordinate role.

ifo Employment Barometer Plummets (March 2020)

German companies have put the brakes on their personnel planning. The ifo Employment Barometer fell heavily to 93.4 points in March after measuring 98.0 points in February. This is the largest decline since records began in 2002 and the lowest value since January 2010. New hires have ceased.

ifo Employment Barometer Falls Markedly (February 2020)

German companies have become notably more reticent about looking for new staff. The ifo Employment Barometer fell to 98.1 points in February after measuring 99.6 points in January. This is the largest decline since December 2008. The optimism that prevailed on the German