However, with the right framework conditions, 2022 could be the year with the strongest economic momentum since 2010.
BDI expects Germany’s gross domestic product (GDP) to grow from 2.5% last year to around 3.5% this year. Germany’s exports will probably increase by 4% this year compared to last year, thus halving last year.
The Federation of German Industries (BDI) is cautiously optimistic about the industry’s economic recovery. “The purchase order is full, but production isn’t keeping up with demand. Pandemic-related restrictions and supply bottlenecks are affecting much of the economy,” said BDI President Siegfried Russwum.Economy could face another year of stop sign
According to BDI, the German industry is causing great disruption to the global supply chain. Many companies in the automotive, electrical and mechanical engineering industries are suffering from supply bottlenecks.
“These bottlenecks will delay the creation of more than € 50 billion in industrial value in 2021 and 2022, respectively,” Russwurm said in a press release. “Despite a full-order book, a shortage of microchips, components and raw materials will continue to impact production for some time.”
Given the risks, he said, the economy is increasingly dependent on reliability and predictability. Even in the SME sector, “This year’s top priority political priority must be to strengthen industry, exports and innovation. After all, industry will continue. In 2022 with our economy It will be the driving force for prosperity, “emphasized the president of BDI.
For industrialized nations, which face global competition every day, maintaining activity is not enough, Rasworm said. Returning to pre-crisis levels is not enough, he added. “Policymakers must reverse the negative trends of recent years, go beyond crisis management and accelerate their pace of action, and embark on a growth course.”
President BDI urged the new federal government to make progress quickly and with all its might.
Fiber2Fashion News Desk (DS)
BDI is cautiously optimistic about the recovery of German industry
Source link BDI is cautiously optimistic about the recovery of German industry