A recent July survey by the Ifo Institute reveals significant concerns among German businesses regarding their global competitiveness. Specifically, 25.4 percent of companies fear that they are losing ground in markets outside the European Union.
Furthermore, 17 percent of these businesses believe that the competitive standing of German industrial products within the European market is deteriorating. Klaus Wohlrabe, head of the Ifo surveys, commented that despite economic fluctuations, the German industry cannot currently secure better positions in international markets, noting that competitive pressure remains particularly high outside of Europe.
While only 5.2 percent of companies forecast an improvement in competitiveness outside the EU, 6.3 percent predict a positive trend within Europe.
The automotive industry faces the steepest challenges internationally, with 43.0 percent of its companies reporting a weaker competitive position outside the EU. Other severely affected sectors include metal production and processing (29.1 percent), the chemical industry (26.0 percent), and mechanical engineering (25.5 percent). Similarly, around one in four manufacturers of metal goods (25.3 percent) and electrical equipment (24.5 percent) report weakened competitive positions on international markets.
Pressure is also mounting within the EU. Automotive manufacturers (24.8 percent) and the chemical industry (22.1 percent) are the most frequent sectors reporting a decline in competitiveness inside the bloc. Wohlrabe stated that the industry’s competitive issues are structural in nature, suggesting that improvements in short-term economic conditions alone will provide little relief.
The beverage industry stands out as a positive exception, being the only sector that has managed to improve its competitive position both inside and outside the European Union.
