Siegfried Russwurm, President of the German Industry Federation (BDI), reported that German industry exports are likely to lag behind global trade growth by 2 percent this year.
A report on industrial production and trade in industrial products was prepared by BDI. Russwurm, who presented the report at the Hanover Industry Fair, said that the growth momentum in the German economy is still extremely low at the moment, demanding less “bureaucracy” from the German government and warned that “Germany’s competitiveness is decreasing”.
BDI President Russwurm reminded that global trade is expected to increase by 2.5 percent this year, and stated that they expect Germany’s industrial exports to increase by 2 percent this year compared to last year. Pointing out the importance of the industry for the German economy, Russwurm said, “We are losing world market shares again because world trade is growing faster than our exports.”
LESS BUREAUCRACY IS WANTED
Russwurm also reported that they expect Germany to see a 1 percent increase in industrial production this year.
Stating that innovation is the strongest ‘engine’ of the German industry in global competition, Russwurm said, “Politicians must do their part to protect the climate in Germany, keep this engine (innovation) running for digital change and the growth of the economy.”
BDI President Russwurm emphasized that the industry in Germany needs a reduction in bureaucracy, visible tax cuts and a reliable and affordable energy supply for further investment and said, “The high electricity price in the industry urgently needs to return to a level that can compete in Europe, otherwise the transformation in the industry. is in danger of failing,” he said.
‘IMPORTANT FOR GERMAN COMPANIES’
Stressing that there is a broad consensus that the German industry needs China, Russwurm said, “China is an important market for German companies and it will be.”
In its previous forecast, the BDI had forecast the country’s exports to grow by 1 percent this year. Germany’s exports increased by 3 percent last year compared to 2021.
2 PERCENT DECREASE FORECAST
On the other hand, the German Engineers Association (VDMA) also reported that Germany’s mechanical engineering production increased by 3.2 percent in the first two months of 2023 compared to the same months of the previous year.
Despite the said increase, the VDMA maintained its forecast for a 2 percent decline in Germany’s mechanical engineering output for this year.
VDMA President Karl Haeusgen said in a statement on the subject, “The slightly improved economic environment at the moment will only be reflected in the orders and sales in the mechanical engineering sector with a delay.”