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German industry competitiveness falls to record low: ifo

15 Nov '25

1 min read

German industry competitiveness falls to record low: ifo

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German industry's competitiveness hit a record low in October, with 36.6 per cent of firms reporting weaker positions outside the EU and 21.5 per cent within, according to the ifo Institute.
Energy-intensive sectors such as chemicals saw the sharpest declines.
Without fundamental reforms, Germany risks falling further behind, warned Klaus Wohlrabe.

German industry’s competitiveness has fallen to its lowest level yet, according to the latest ifo Institute survey. In October, more than one in three companies (36.6 per cent, up from 24.7 per cent in July) reported a decline in their competitiveness compared to countries outside the EU. Within the EU, the share rose from 12 to 21.5 per cent—also a negative record.

“German industry’s competitiveness is at a new low,” said Klaus Wohlrabe, head of surveys at ifo. “This shows how strong the impact of the structural problems has now become.”

The decline spans all sectors, with energy-intensive industries hit hardest. In the chemical industry, more than every second company reported a drop in competitiveness. Similarly, 47 per cent of manufacturers of electronic and optical products and around 40 per cent in mechanical engineering noted declines.

“The structural problems are known—the challenge now is to tackle them decisively,” added Wohlrabe. “Without fundamental reforms, Germany risks falling further behind in international comparison.”

Fibre2Fashion News Desk (SG)

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