Rough patches in international trade

Supply chain problems, geopolitical risks, enormous price increases – the road to international trade has become rougher. The global economic consequences of the Corona pandemic and the Russian war in Ukraine have also affected the internationally interconnected German economy. What about Germany as an export nation?

With a foreign trade ratio for goods and services of around 90 percent, Germany is the most open economy of the G7 countries – and thus particularly dependent on multilateral trade rules, functioning supply chains and internationally competitive location factors. However, rising trade barriers are making it more and more time-consuming and expensive for companies to plan and conduct their foreign business. According to the current DIHK survey Going International, 56 percent of internationally active companies registered an increase in trade barriers last year – more than ever before in the survey.

German companies are pushing ahead with de-risking at full speed by diversifying their supply chains and sales markets.

The international competitiveness of the German economy is also under pressure in view of local conditions – such as a shortage of skilled workers, excessively lengthy planning procedures and in some cases considerably higher energy prices than in competing location markets, such as the USA. Added to this are rising interest rates due to excessively high inflation, weakening global demand and concerns about the stability of the financial markets. These challenges are preventing a stronger export upswing in the current year. The export expectations of our companies remain very subdued. In this mixed situation, German companies at home and abroad are very aware of the geopolitical risks in their business decisions: they are pushing ahead with de-risking at full speed by diversifying their supply chains and sales markets.

What is indispensable in the search for new business partners and suppliers? Personal contact! HANNOVER MESSEhas always offered the ideal platform for this and is therefore an important building block for the international networking of German companies. The DIHK and the network of German Chambers of Commerce Abroad (AHKs) also support companies – which is why we are pleased to be at the Hannover Messe again this year.