The Federation of German Industries (BDI) is cautiously optimistic about the economic recovery in industry. “Order books are full, but production is not keeping pace with demand. Pandemic-related restrictions and supply bottlenecks are affecting large parts of the economy,” BDI president Siegfried Russwurm said recently. The economy could face another stop-and-go year.
With the right framework conditions, however, there is also a chance that 2022 will be the year with the strongest economic momentum since 2010.
The BDI expects Germany’s gross domestic product (GDP) growth in the order of 3.5 per cent this year–after 2.5 percent last year. German exports would probably increase by four per cent this year compared to last year—and thus by just half as much as last year.
The Federation of German Industries (BDI) is cautiously optimistic about the industry’s economic recovery. “Order books are full, but production is not keeping pace with demand. Pandemic-related restrictions and supply bottlenecks are affecting large parts of the economy,” BDI president Siegfried Russwurm said. The economy could face another stop-and-go year
According to the BDI, the German industry is facing massive disruptions to its global supply chains. Many companies in the automotive, electrical and mechanical engineering industries are suffering from supply bottlenecks.
“These bottlenecks will slow down industrial value creation by more than 50 billion euros in each of 2021 and 2022,” Russwurm said in a press release. “Despite full order books, a lack of microchips, components and raw materials will continue to affect production for some time.”
In view of the risks, he said, the economy is all the more dependent on reliability and predictability – also in the SME sector: “The top political priority this year must be to strengthen industry, exports and innovation. After all, industry will continue to be the engine that drives our country’s economy and prosperity in 2022,” emphasised the BDI president.
For an industrialized nation that faces global competition day after day, merely maintaining activities is not enough, Russwurm said. Even a return to pre-crisis levels is not enough, he added: “Policymakers must reverse the negative trend of recent years, go beyond crisis management to increase the pace of action and embark on a growth course.”
The BDI President called on the new federal government to work swiftly and with all its might to implement progress.
Fibre2Fashion News Desk (DS)