This year's Christmas season was not good for the German business sector due to global conditions.

 Tuesday, December 24, 2024

Islamabad (UrduPoint News Today / Pakistan Point News - DW Urdu - 24th December 2024) According to reports received from the federal German capital Berlin on Tuesday, December 24, just a day before the Christian festival of Christmas, the German business sector, especially small traders, had hoped that their business would pick up significantly this year due to the traditional Christmas shopping.

Wars and political uncertainty

However, the current international situation, especially the Russian-Ukrainian war in Europe, the Gaza war in the Middle East and the very low economic growth rate in most countries, have also affected the purchasing trend of German consumers.

Thus, instead of being happy with the almost end of the Christmas season, German retailers are now worried that their overall business income did not meet expectations.

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“The ongoing wars in the world and the political uncertainty in Germany are making both the overall atmosphere and consumer sentiment uneasy,” Alexander von Prein, president of the German Retail Association (HDE), the country's retail trade association, said on Tuesday.

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Alexander von Prein said that this year's Christmas season revenue for traders in Germany was lower than in 2023 and the reason is that ordinary shoppers are preferring to save their money instead of spending it.

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The German Retail Association hopes that even if the effects of inflation on business are ignored, total Christmas season sales this year can be “at most” the same as last year.

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"Personally, we fear that this year's total revenue will be lower than last year," the HDA president told reporters.

Although final figures on Christmas season trading activity will be released some time later, he said, "we had estimated that German retailers would generate 121 billion euros ($125.8 billion) in revenue in November and December this year."

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According to von Prien, the collapse of the ruling political coalition in Germany and the decision to hold new general elections in February next year have also affected “public purchasing behavior,” “People are uncertain, because they don’t know what will happen in 2025.”

According to the German Retail Association, sales in some trade sectors, such as cosmetics, toys and books, were relatively better.

M M/A B A (dpa, Reuters)