GBP Monitor August: More than Half of the Companies in Germany Received State Aids, Businesses Hit Hardest by the Coronavirus Pandemic Now Demand for More

The war in Ukraine continues to effect companies in Germany. This is documented in the August report of the German Business Panel (GBP) at the University of Mannheim.

Since the outbreak of the Russia-Ukraine war, the key business figures of companies in Germany have seen a negative development. Investments and profits reached a new low in July. While companies expected rising profits (+3.4%) shortly before the outbreak of the war in Ukraine, they predict a significant drop in profits (-9.8%) compared to the previous year in July. Only sales are yet still rising. “The large difference between sales and profits shows that cost pressure is still burdening the economic situation of companies. This pressure arises not least from increasing energy costs,” says Davud Rostam-Afschar, academic manager of the GBP. Calls for new state aids are growing louder

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