Caption: Growing skepticism among German SMEs. (picture alliance/dpa/Christian Charisius)
Germany's small and medium-sized enterprises remained on a steady course last year despite the energy crisis, and high inflation. However, the concerns of the approximately 3.8 million companies are growing in view of the economic slowdown.
The environment is very, very challenging, said Fritzi Köhler-Geib, chief economist at state development bank KfW, at the presentation of its annual survey of German SMEs. "Companies are currently looking at their business prospects with more skepticism. And although the credit channel continues to function, difficulties in credit negotiations are increasing." However, the balance sheet situation of the companies is still very solid, he said.
According to the survey, almost one-third of small and medium-sized companies with annual sales of 500 million euros or less expect sales to decline in the current year - by an average of 24 percent. This has consequences for investments: 37 percent of SMEs said in September that they had postponed the investments they had planned at the beginning of the year to a later date or had implemented them to a lesser extent. A further 13 percent said they had abandoned their plans altogether.
Last year, the turnover of SMEs, including price increases (in nominal terms), rose by a good 16 percent to 5,322 billion euros, according to the survey. In real terms, the approximately 11,300 companies surveyed in the first half of the year posted a 10 percent increase in turnover. "In 2022, despite all the adverse factors such as the energy crisis, and rising prices, the blows to small and medium-sized enterprises have remained manageable," Köhler-Geib said in Frankfurt.
Notice: No person, organization and/or company shall disseminate or broadcast the above article on Xinhua Silk Road website without prior permission by Xinhua Silk Road.
A single purchase
