Gloom settles over Germany’s economy, with businesses downbeat about the coming months WPXI [Video]

FRANKFURT, Germany — (AP) — Germany’s businesses remain mired in pessimism, a key survey showed Friday, as Europe’s largest economy struggles with shortages of skilled labor, slower global trade, high interest rates and political squabbling.

The closely watched Ifo institute survey of business sentiment rose only slightly to 85.5 points in February from 85.2 points in January due to “slightly less pessimistic expectations,” the institute said in an accompanying statement.

“The German economy is stabilizing at a low level,” the institute said.

The survey results follow a sharp downgrade of the government’s expectations for growth this year, to only 0.2%, from 1.3% in the previous forecast. Germany’s economy shrank 0.3% in 2023, the worst performance by a major economy and a reversal of years of economic success as an export champion.

Giant chemical company BASF on Friday joined a string of major employers saying they would cut positions, citing a “low-demand environment.” The company said it made money last year “in all significant countries except Germany” …