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A new survey by the Institute of the German Economy (IW) carried out among 44 industry associations across the country reveals that whilst the majority of industry sectors believe that the worst of the crisis is over, the majority also believe that further redundancies will be inevitable in 2010.
20 out of the 44 surveyed industry associations forecast that business will be slightly better in 2010 than it was in 2009. The energy/water sector and the steel industry believe that business will be strongly up in 2010.
A further nine industry sectors predict stagnation for 2010 and 12 industry sectors expect a further deterioration for 2010. The worst outlook came from the ship building and ocean technology sector, which expects a strong fall in turnover for 2010.
16 industry associations believe that staffing levels will remain constant in 2010 whilst 27 fear that further redundancies will be unavoidable in 2010.
IW Director, Professor Michael Huether, said "companies have been able to keep staff on by applying flexible working hours systems and reduced working hours schemes but if things get worse redundancies will be unavoidable."
"On the other hand, we should not be pessimistic. If the world economy improves more and faster than expected, the export-oriented German economy will also improve and probably faster than other world economies."