The German industrial sector perceives itself as facing declining competitiveness. According to an Ifo Institute survey conducted in April, 25.2 percent of companies reported losing competitiveness in markets outside the EU, while this figure was 15.5 percent within Europe. Klaus Wohlrabe, head of the Ifo surveys, noted, “German companies are facing increasing pressure in global markets. So far, there are no signs of a trend reversal”.
The assessment of competitive position has deteriorated across almost all sectors. The automotive industry remains particularly challenging, with about 38 percent of companies reporting a decline in international competitiveness. Other sectors facing significant disadvantages include mechanical engineering (31.8 percent), metal production and processing (38.3 percent), and manufacturers of metal products (34.5 percent).
The chemical industry offers a slight positive point: within Europe, its perceived competitive position has marginally improved. However, this assessment worsened outside of Europe. Wohlrabe warned that “Germany risks further falling behind in international competition. Reforms are absolutely essential to counteract this”.