Companies Fear Permanent Cost Burdens

The high inflation rates as a consequence of the energy price crisis, which began with the Russian war of aggression on Ukraine, were associated with considerable problems not only for private consumers, but also for companies. For Germany, a high-cost country, further cost increases are problematic for its international competitiveness. Within the framework of the IW business survey, the burden of various cost categories was measured. The increase in wage costs in particular is perceived by almost 40% of the companies surveyed as at least a strong additional burden, which is seen by practically all companies as a permanent burden. Energy, natural resources and material costs, on the other hand, which have characterised the past year, are seen as a permanent burden for competitiveness by two-thirds of the companies. Together with a further increase in permanent regulatory burdens, there are fears of a permanent deterioration for Germany as a production location.