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Germany's exports under pressure: BGA president warns of a dramatic situation
"The challenges of German export are serious. Dr. Dirk Jandura, President of the BGA, urgently demands new free trade agreements and less bureaucracy to move companies back. While exports have increased slightly in July 2024, the figures show a decline compared to the previous year. Learn more about the current situation and necessary measures for the export nation Germany."
Germany's exports under pressure: BGA president warns of a dramatic situation
The challenges of German export: a critical analysis
In the global economic situation, German exporters face considerable challenges. A current analysis shows that the situation of exporters in Germany is still alarming. Even if the month of July 2024 completes overall with a small increase in exports, this is not enough to gloss over the persistent declines in the foreign trade relationships to non-EU countries.
The President of the Bundesverband wholesale, foreign trade, services (BGA), Dr. Dirk Jandura has asked German companies to advise the government more urgent measures to improve Germany's competitiveness. "Without the conclusion of new free trade agreements, such as the long-awaited Mercosur contract, it will be difficult to enliven exports sustainably," emphasizes Jandura. This shows that the connection between international trade and the economic stability of a nation is more important than ever.
The current situation is not only problematic for corporate management, but also for the employees. When companies doubt progress in production and competitiveness, this has a negative impact on investments. The companies are unsettled and therefore shy away from the necessary investments, which in turn reduces productivity. "Investments in modern equipment are a key to more efficiency and thus to stronger export," adds Jandura. This link between investment tendency and export potential is of great importance for the entire economy.
The effects of these stagnating trade conditions are clearly shown in the current results of the BGA climate indicator and a recently carried out entrepreneurial survey. The mood among the entrepreneurs has deteriorated considerably since the beginning of the year, with depressing expectations for future business. When asked about the future business expectations, companies stated that they remain pessimistic - an alarming sign of the economic further education of Germany.
The latest statistics from the Federal Statistical Office show that exports in July only rose slightly by 1.7 percent compared to the previous month. But the numbers compared to July of the previous year show a minus of 1.2 percent, which underlines the critical situation of the export industry. In the area of non-EU countries, exports fell by 0.2 percent compared to June 2024 and compared to July of the previous year by 1.6 percent.
The importance of this development should not be underestimated. A healthy export sector is essential for the growth of the German economy. It is necessary that the federal government is determined to restore confidence in Germany. This includes not only reducing bureaucracy, but also a clear strategy for the negotiation of new trade agreements. The success of the German export industry therefore decisively depends on political decisions and the willingness to cooperate at European level.
In summary, it is clear that German foreign trade has arrived at a critical point. The excellent products that produce German companies deserve to be internationally successful. But this requires proactive measures and a strong political commitment.