Industry expects upward trend in 2021+

After the economic slump during the Corona crisis, industry could become the driving force of the economy in 2021. However, an IW survey also shows that the pre-crisis level is still a long way off for many.

Confidence dominates the German economy for the coming year. According to a survey by the Institute of the German Economy (IW), 26 out of 43 sectors expect higher economic activity than in the current year, which was dominated by a massive economic slump as a result of the Corona crisis. However, the hopeful outlook for 2021 does not yet mean a return to pre-crisis levels for a number of companies and entire sectors, explained the institute, which is close to employers.

"Industry is the driving force"

The manufacturing sector in particular, however, is driving hopes for a recovery. The first hard lockdown in spring also had a massive impact on industry because many countries temporarily closed their borders. For some time now, incoming orders and production have been picking up again.

Mechanical engineering, the electrical industry and the chemical industry, for example, hope to put the crisis year behind them. According to the IW, however, it will take some time before things return to normal. The hospitality, retail, trade fair and advertising industries are hoping for at least moderate growth after the crisis year of 2020, which saw some businesses completely shut down.

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