The German industrial sector perceives a decline in its competitiveness. According to an April survey by the Ifo Institute, 25.2 percent of companies reported losing competitiveness in non-EU markets, compared to 15.5 percent within Europe. Klaus Wohlrabe, head of Ifo surveys, stated, “German companies are increasingly under pressure in global markets” adding that “There are no signs of a trend reversal yet”.
The assessment of internal competitiveness has worsened across nearly all industries. The automotive sector remains particularly challenging, with approximately 38 percent of companies reporting declining international competitiveness. Other struggling sectors include mechanical engineering (31.8 percent), metal production and processing (38.3 percent), and manufacturers of metal products (34.5 percent), many of which noted disadvantages compared to competitors.
The chemical industry offered a relative bright spot, as its assessment of its competitive position showed a slight improvement at least within Europe. However, this sector’s standing has continued to deteriorate outside of European borders. Wohlrabe warned that “Germany risks falling further behind in international competition” emphasizing that “reforms are essential to counteract this trend”.
