According to a new report by KfW-Research, the number of German mid-sized enterprises operating abroad has significantly decreased, dropping from approximately 880,000 in 2022 to around 763,000 in 2023. The report, which was previously featured in the “Welt am Sonntag” highlights a notable decline in the international activities of German mid-sized companies.
The study, which analyzed data from around 9,500 mid-sized enterprises, reveals that only about 20 percent of the total 3.8 million mid-sized companies in Germany are currently engaged in cross-border activities, a figure lower than the long-term average prior to the COVID-19 crisis.
The trend of decline is expected to continue in 2024, with 25 percent of the companies surveyed reporting a decrease in international sales and 21 percent reporting an increase. KfW-Chefvolkswirt Dirk Schumacher attributes the decline to deteriorating conditions for international trade, citing geopolitical tensions, growing export competition from China and the protectionist trade policies of the United States as major factors.
Additionally, many mid-sized companies view the conditions in Germany as increasingly challenging for their competitiveness, Schumacher noted, emphasizing the need for political measures to counterbalance these trends.