According to a recent survey by the Munich Ifo Institute, a significant portion of Germany’s self-employed sector feels their existence is currently threatened. Twenty-point-six percent of the self-employed reported acute concerns about their economic future, a figure substantially higher than the corresponding percentage for the overall economy (which stood at 8.1 percent in April).
Ifo expert Katrin Demmelhuber noted that the combination of limited orders and growing uncertainty is increasingly straining the self-employed. In April, nearly half of respondents (48.4 percent) reported a shortage of orders, an increase from 46.6 percent recorded in January. This shortage proportion was even higher for sole traders and small businesses, standing at 39.0 percent-above the overall average. Demmelhuber explained that this difficulty is due to “many companies holding back their orders, while consumer sentiment remains subdued”.
This tense situation is also reflected in the broader business climate. The “Jimdo-Ifo Business Climate Index” dropped to -29.9 points in April from -20.8 points in March, marking a new low. The decline in expectations has continued. Furthermore, the proportion of participants who predicted a negative situation for the current period rose significantly. Compounding this, the generalized uncertainty among the self-employed increased; 38.8 percent stated they find it difficult to assess their future business development given the current economic environment, up from 36.4 percent in March.
