Foreign trade
DIHK: The global economic environment is becoming more uncomfortable
According to the DIHK, German companies’ expectations of their international business have improved moderately, even if the economy has stalled in many regions. Photo: Marcus Brandt / dpa
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Worldwide, the DIHK surveyed more than 3,200 German companies represented abroad. Obviously, problems in their supply chains are worsening. This can lead to production being cut back.
From the point of view of the German Chamber of Commerce and Industry, the global economic environment is becoming more uncomfortable – supply chain problems in particular are worsening.
As a survey of German companies abroad showed, 54 percent of companies report problems in the supply chain and logistics as a result of the corona pandemic. Compared to spring 2021, the value has increased by 14 percentage points and thus to a record level.
The result: goods and services are missing, there are production cutbacks – and even failures, as DIHK foreign trade chief Volker Treier said on Thursday in Berlin. That leads to price pressure. Companies pass price increases on to customers – this will ultimately also reach the consumers.
Industrial and construction companies in particular are affected by supply chain disruptions and their effects. In addition to increased demand on the one hand and insufficient production capacities on the other, according to the survey, companies see transport problems – in particular due to a lack of containers and freight capacities on ships as well as production downtimes at suppliers.
“AHK World Business Outlook”
The DIHK presented an “AHK World Business Outlook” in which the feedback from more than 3,200 German companies represented abroad were summarized.
In view of the challenges in international business, 54 percent of companies wanted to adapt their supply chains. Among these companies, 72 percent were looking for new suppliers, 32 percent were planning to change or shorten delivery routes. It is noticeable that 15 percent of the companies wanted to relocate their production or parts of their production to new locations.
Overall, according to the DIHK, German companies’ expectations of their international business have improved moderately, even if the economy is stalling in many regions. The DIHK expects German exports to grow by 7.0 percent in 2022. Every second company named increased energy and raw material prices as the greatest risk for the global economy in the next twelve months – significantly more than in the spring. For 37 percent of German companies abroad, the shortage of skilled workers is a business risk, which is a record.