German companies hope that the year 2020, after two years of continuously weakening economic activity, will bring about a turnaround for the better. This is shown by the current ifo survey: at the end of 2019, the climate in the German executive floors is better than it has been since the summer months.
The clearer outlook for Brexit and the progress made in the trade talks between the USA and China are giving German companies a sigh of relief and increasing confidence for 2020. Above all, the troubled export economy can hope for a recovery of the global economy and better business. Nevertheless, it should not be overlooked that the business climate index is still not far from its multi-year low from autumn. There are still no signs of any really more dynamic growth.
After all, the almost two-year slide should at least be over now. Growth in Germany is currently only just above zero. The stable service sector and the booming construction industry have prevented a slide into recession in recent months.
If industrial companies can now hope for a better order situation again, they will certainly try to keep their personnel on board despite the current lull. This will help the labour market and also improve the prospects for the economy as a whole. However, growth in 2020 is unlikely to be stronger than last year.