Nearly one in three German industry firms reports a decline in competitiveness, according to a survey by Munich’s Ifo Institute released Tuesday. In January, 31.2 % of respondents said they were less competitive than firms in non‑EU countries, while 17.2 % noted weaker standing within Europe. “Only a few companies see improvement in their position on the world markets” said Klaus Wohlrabe, head of the Ifo surveys. “The slow erosion of competitiveness continues”.
The downturn spans almost all sectors. In metal production and processing, roughly 47 % of companies report falling international competitiveness-a figure similar to the 45 % drop seen in the chemical industry. About 40 % of machine‑tool manufacturers also cite a decline.
The automotive sector offers a glimmer of hope: firms claim an average improvement in their competitive stance within Europe, although their position outside Europe has worsened further. “Germany risks losing ground in the medium term” Wohlrabe warned. “Fundamental reforms are urgently required”.
