German manufacturing competitiveness declines on EU & global markets

27 May '24

1 min read

German manufacturing competitiveness declines on EU & global markets

Pic: Adobe Stock

Insights

The competitiveness of German manufacturing has been declining within the EU since Q3 2022 and globally since Q1 2022, as per monthly ifo survey analyses.
Almost all sectors reported decreased competitiveness in Q1 2024 compared to Q4 2023.
German companies are facing increasing pressure domestically, with a positive performance trend reversing a year ago.

The competitiveness of German manufacturing within the EU and on global markets has been deteriorating for two years, according to analyses of the monthly ifo survey. Companies have reported a decline in their competitiveness within the EU since the third quarter (Q3) of 2022. A similar trend has been observed in global markets outside the EU, where the decline started in Q1 2022.

In Q1 2024, almost all manufacturing sectors reported that their competitiveness had deteriorated compared to Q4 2023. This marks a continued downward trend, adding to the challenges faced by German manufacturers.

Furthermore, increasing pressure is being felt by German companies domestically. Until the end of 2022, the majority of companies tended to perform well in the domestic market. However, this positive trend reversed a year ago, indicating growing difficulties within Germany's own market.

Fibre2Fashion News Desk (DP)

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