Companies in Germany have significantly reduced their investment plans, according to the ifo Institute’s Business Survey. The ifo investment expectations for the current year fell to 2.2 points in November, down from 14.7 points in March. “The investment climate has deteriorated noticeably. This is the result of higher financing costs, weak demand, and uncertainty regarding economic policy,” says Lara Zarges, economic expert at the ifo Institute. Companies are also cautious about the coming year; with a balance of 1.2 points, the ifo investment expectations are actually slightly lower than this year.
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