German companies are increasingly worried about their survival, with the situation particularly critical in the retail sector, according to a new survey by Munich's ifo Institute. The April Business Survey, released Monday, shows that 8.1% of German companies believe their survival is at risk, with the figure rising to 17.4% in the retail sector.
“The economic situation remains tense,” said Klaus Wohlrabe, head of surveys at ifo. “Given the geopolitical uncertainty, insolvency figures are likely to remain at a high level in the coming months.” The survey notes a reluctance among customers to spend, while growing online trade and cheap foreign discounters attract those still willing to shop.
In total, 11.6% of all trading companies (wholesale and retail) fear they will be forced out of business. Three core pressures weigh on businesses: weak demand and falling orders, rising operating and energy costs, and heavier bureaucracy. Liquidity bottlenecks are increasing as customers save or go bankrupt.
“The crisis is spreading along the supply chains,” Wohlrabe said. “When customers leave or cancel orders, it hits suppliers and service providers with full force.”
German Defense Minister Boris Pistorius warned Monday that Russian President Vladimir Putin's talk of a possible end to the war in Ukraine could be another “deception.” During a surprise visit to Kyiv, Pistorius dismissed Putin's weekend statements on willingness to negotiate, saying Putin is trying to distract from his own weakness.
The nocturnal animal section at Wilhelma Zoo in Stuttgart reopened Monday after two children were injured in late April. Improved lighting and increased staff presence have been implemented. A 28-year-old runner, Arda Saatçi, covered 600 km in 123 hours in the American desert, though he fell short of his 96-hour goal.
Four German passengers from the hantavirus-affected MV Hondius arrived at a Frankfurt hospital for examination. The WHO reports six confirmed hantavirus cases from the cruise ship, with three deaths. Germany's Federal Network Agency advised using gas sparingly amid the energy crisis.
Switzerland and Austria remain top destinations for German migrants, with 330,000 and 240,000 Germans living there respectively. The Bundesrat vetoed a proposal for employee bonuses. EU foreign policy chief Kaja Kallas rejected Putin's proposal to involve former Chancellor Gerhard Schröder as a mediator. Five pro-Palestinian activists, known as the Ulm 5, face trial in Stuttgart for attacking an Israeli defense company site.
Source: www.dw.com