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- Germany's DIHK: export growth will be stagnant this year in the wake of trade conflicts and Brexit
Germany's DIHK: export growth will be stagnant this year in the wake of trade conflicts and Brexit
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a survey of around 26,000 firms shows that more companies still expect business to be worse rather than better this year
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investment sentiment is slightly better than it was from the October survey.
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DIHK expects growth of just 0.7 percent for the current year (vs. 0.5% previous).
"Around 0.5 percentage points of this are attributable to statistical effects such as the overhang from the previous year and four additional working days this year. That is why we currently see little real growth, " says DIHK chief executive Martin Wansleben. "What is worrying is that a whole range of data, particularly from industry, suggest that structural challenges are also associated with the current economic weakness, such as e-mobility, digitalisation, the energy transition and the continuing shortage of skilled workers. Some regions are particularly affected."
46 percent of companies classify the factor "economic policy framework conditions" as a risk for their own business development. "This is the highest value we have ever measured," says Wansleben. "This has to do with international uncertainties such as the ongoing trade conflict between the US and China, Brexit and the still unforeseeable consequences of the Coronavirus. But there is also growing concern about the lack of momentum in Germany. In view of Europe's highest electricity prices, high taxes compared to the OECD and slow and incomplete internet connections, many companies, especially in industry, are increasingly asking themselves the question: How can we remain competitive in this country in the long term?"
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