The joint diagnosis presented today by the economic research institutes confirms the analysis and forecast by IG Metall on the current economic development. The joint diagnosis forecasts a slight recession in the second half of 2022 and in the first half of 2023. Jörg Hofmann, First Chairman of IG Metall: “This is a clear rejection of the panic-mongering of individual employer representatives, but also politicians. Responsible action is now required, not interest-driven fake news.”
The reason for the decline in economic output lies in the massive slump in the purchasing power of private households in view of the enormous rate of inflation. Jörg Hofmann: “This forecast confirms our statement that one-off payments are not sufficient to permanently raise household income to the increased cost of living level. We urgently need an increase in the tables if we do not want to accept a permanent loss of prosperity and thus a decline in overall economic performance.”
The institutes also confirm the view of IG Metall that the majority of companies succeed in passing on the cost increases to customers. The energy-intensive companies that do not have this option or do not have it to the full extent are much more affected. In addition to the electricity and gas price cap, further state support is required here in order to avert insolvencies.
Jörg Hofmann: “The joint diagnosis confirms that IG Metall is sticking to its course. We need a magic square over the next few months: strong, permanent wage increases must strengthen purchasing power. An effective gas and electricity price cap must limit the burden on companies and households. Energy-intensive companies in existential need need support to secure employment there. And last but not least, we need the skimming off of the profits from the crisis so that the social balance in our country is preserved.”