Nearly one in three industrial firms in Germany reports a decline in its competitiveness, a survey by the Munich Ifo Institute revealed on Tuesday.
In January, 31.2 % of companies said they were less competitive compared with countries outside the EU, and 17.2 % reported the same against other European states. “Only a few businesses see improvements in their position on world markets” said Klaus Wohlrabe, head of the Ifo survey. “The gradual erosion of competitiveness continues”.
The drop spans almost all sectors. The hardest hit is metal production and processing, where about 47 % of firms report falling international competitiveness. The chemical industry follows closely at 45 %, and machine manufacturing sees a decline among roughly 40 % of its companies.
The automotive sector, however, offers a glimmer of hope. Companies there say their competitiveness has improved on average within Europe, although it has worsened outside the continent. “Germany risks losing its competitive edge in the medium term” Wohlrabe added. “Profound reforms are urgently needed”.