In Germany, the mood at companies is excellent, the economy robust and capacities fully utilized. Despite this, the state-backed development bank KfW is predicting that demand for new loans by businesses will grow only moderately in 2017.
“Investment dynamics remain poor,” says KfW’s chief economist Jörg Zeuner. And this is because extraordinary political risks make it difficult for businesses to plan long-term. Why? Primarily it’s about future economic relationships to partners like the USA or Great Britain.
Businesses are still awaiting details of US trade policy under President Donald Trump. The Brexit has also caused uncertainty and as of this week, British politicians decided that in June their country will elect a new parliament, which will then decide on what course to take in negotiations for leaving the European Union.