Tuesday, November 20, 2012

German Business Trends

Business trends tend to go up and down.  For the past three years....Germany has been on a rather positive trend with most Germans optimistic.  There's a business institute that has gone out in Germany and researched how companies think they will react in 2013.  The numbers are in.....2013, will see roughly a quarter of all German companies shrinking....letting some people go.  They aren't talking of a massive scale, but it's enough that folks will notice it.

Currently, Germany is operating with 5.4 percent unemployment.  It's something that is rare to see.

Because trends have to occur....like the heating and cooling of a house....Germany has likely peaked on it's high business trend and looking at a year or two of some changes.

In time for the elections?  It's hard to say.  If the election is in the fall of 2013 and the unemployment flips to 6.5 percent by then....it would have a major sway in the election.  Course, if leadership were to change, you'd merely have to stand there with the current regulations and taxes in place, waiting for eighteen months of a trend to pass, and then better times would come back for another period.

The interesting piece of this puzzle is that thousands of Greeks and Spaniards are coming into the German market place right now.  If a company was going to make a decision on letting folks go.....do they get the boot before the Germans?  This is a question that I can't answer.

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