Despite a ceasefire in the Iran conflict, the German Chamber of Industry and Commerce (DIHK) has issued warnings regarding prolonged supply issues and high energy prices for the German economy. During an interview with the “Rheinische Post” DIHK’s Head of Foreign Trade, Volker Treier, noted that while the agreement on a ceasefire is a relief for the economy, the overall situation remains highly tense. According to Treier, a survey conducted by the chambers of commerce abroad (AHKs) that the DIHK has analyzed indicates that approximately 85 percent of companies connected to Germany, either directly or indirectly, are affected by the ongoing crisis in the Middle East.
Even if the Strait of Hormuz fully reopens and remains open, disruptions to transport routes and damage to energy infrastructure will have lasting effects. These issues strain international logistics chains, posing a major problem for the German economy. Consequently, the DIHK expert stated that companies must prepare for a sustained period of higher operating costs.
Treier also pointed out that Germany has already experienced some of the world’s highest energy costs even before the crisis. To this, additional pressures from rapidly increased labor costs and record burdens from levies, taxes, and bureaucracy are being added. Because of this confluence of problems, the DIHK believes the federal government must adopt not only practical crisis responses but also structural reforms to provide wider relief to the economy.