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Economist Marcel Fratzscher: »The German economy is in recession«
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Bernd von Jutrczenka / picture alliance / dpa
The President of the German Institute for Economic Research (DIW), Marcel Fratzscher, expects a wave of insolvencies in the next two years due to the ongoing economic downturn.
"It is very likely that over the next two years significantly more companies will go bankrupt or have to go out of business," said the DIW boss of the "Augsburger Allgemeine" newspaper.
»As a result of the corona pandemic, many companies have hardly any reserves left and are now also having to cope with a slump in demand and higher energy prices.«
On the other hand, the crisis has limited the scope for economic aid.
The state will probably not support companies again with such generous aid as in the corona pandemic.
"The concern is that young, innovative companies in particular will go bankrupt, which will slow down the transformation of the economy."
A quick recovery is not to be expected, said Fratzscher.
"The German economy is in recession, which could deepen significantly in the coming months," said Fratzscher.
»The economic recovery will probably be weak and protracted.«
More optimistic tones from Ifo researcher Wollmershäuser
The same newspaper told Timo Wollmershäuser, head of economic research at the Munich Ifo Institute, that he was more optimistic.
As in every recession, bankruptcies and business closures would increase.
"On the whole, the companies are very well able to pass on the increased costs," said Wollmershäuser.
Recently, the number of bankruptcies had risen significantly.
According to calculations by the Halle Institute for Economic Research (IWH), significantly more companies had to apply for bankruptcy protection in September.
The number of insolvencies of partnerships and corporations rose by 34 percent compared to the same month last year to 762.
Sol/Reuters
