“Not pasta then?” Germans quipped earlier this month, on hearing that of all things, a toilet paper manufacturer had gone bust.
“The cuts to gas supplies from Russia this summer and the drastic price increases they triggered are wreaking havoc on economic recovery following the coronavirus,” said Timo Wollmershäuser, Ifo’s head of forecasts, adding that he did not expect a “return to normal” until 2024, when 1.8% growth and 2.4% inflation could be expected.
Toilet paper manufacturer Hakle has filed for insolvency because of soaring energy and raw material costs.Company bosses, trade union leaders, shopkeepers and employees across the country are openly expressing their fears of a crisis in Europe’s largest economy that is in danger of spiralling out of control.
ArcelorMittal steelworks at the ports of Hamburg and Bremen are planning to shut down ‘until further notice’ because of soaring energy costs.Many companies have done just that: reduced production to an absolute minimum or – in the case of the ArcelorMittal steelworks at the ports of Hamburg and Bremen – are planning to shut down “until further notice”.
According to the Federation of German Industries , 90% of companies cite the level of energy and raw material costs as either a “strong” or an “existential challenge”. In the case of ammonia – vital to the agricultural industry for the production of fertiliser – producers such asto a minimum and been forced to buy the chemical from cheaper markets elsewhere in the world.
Another recent survey has shown consumer confidence to be at its lowest since the founding of the Federal Republic of Germany in 1949. Faced with higher energy bills, households are rethinking spending, from holidays to household purchases and meals out.
all German export is going to be 30% more costly