Experiences and Perspectives of German Business abroad
Results of the 2019 IHK Business Survey – National Evaluation
The slowdown in the global economy is making it-self felt among German companies with interna-tional operations. Trade disputes, Brexit and uncer-tainties in connection with sanctions are slowing down foreign business and dampening the mood of the export-oriented German economy. Only 15 per-cent of companies worldwide expect their business to improve. Just as many expect the situation to deteriorate. The expected balance of better and worse valuations thus reaches a zero point. This is the lowest figure since the financial crisis. Only a year ago, the expected balance was still plus 15 percentage points.
Almost every second company has registered an in-crease in trade barriers abroad for its business in the past twelve months. Of those companies that report an increase in trade barriers, 56 percent complain about the effects of sanctions (and coun-ter-sanctions) as well as disadvantages caused by local certification and safety requirements. Such trade policy barriers lead to higher costs and longer delivery times in foreign business. They may even prevent the conclusion of business transactions. Particularly in Russia, the USA, the MENA region and Turkey, companies are struggling with such ob-stacles. The planned introduction of American im-port duties on European cars and the expected cor-responding countermeasures by the European Union (EU) likewise entail the risk of escalation with customs duties and counter duties.
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