More than a year and a half into the coronavirus pandemic, the challenges for German companies abroad are numerous.
The economic recovery has lost momentum in some parts of the world, according to the latest survey conducted by the Association of German Chambers of Commerce and Industry (DIHK) among more than 3,200 member companies of the German Chambers of Commerce Abroad (AHK). Only two out of five companies were expecting the economy in their respective countries to improve over the next twelve months, pointing towards subdued expectations compared to the previous survey in spring.
German companies in the Asia-Pacific region (excluding China), Africa and the Middle East, as well as in the European Union were largely expecting the economic situation to improve, compared to the previous survey. However, the outlook for China, as well as North and South America appeared significantly dampened. Yet, despite a cooling economy, companies in various locations around the world were expecting a further revival of their own business activities. Significantly more companies than in spring were therefore intending to increase their staff and investment expenditures over the coming year.
At the same time, travel restrictions and problems in the supply chains and logistics were preventing smooth business operations and an overall self-sustaining, investment-driven upturn in international business. Irrespective of the immediate effects of the coronavirus pandemic, raw material and energy prices currently represent the greatest business risk for German companies abroad. In addition, the shortage of skilled workers has gained further in importance and represents a considerable risk for companies' employment plans outside Germany.
Read the full press release (German language).
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