Small businesses and freelancers are particularly hard hit

Berlin Germany has a growth problem that affects not only the big industrial companies. On the contrary, small businesses are facing increasing problems. This is evidenced by several indicators, the main of which is the “Jimdo-Ifo Self-Employed Business Climate Index” – which includes self-employed people and small businesses with up to eight employees, and fell in July to its lowest level since the survey began in August 2021. The climate for starting a business is also lower than it has been in years.

Germany’s economic prospects are bleak. Economic output contracted for two consecutive quarters, and gross domestic product stagnated between April and June, according to preliminary estimates. In the corporate landscape, it has been particularly large industrialists who have been raising eyebrows in public scrutiny thus far. The earnings warning from chemical giant BASF was a major warning signal.