Nearly half of German companies (48%) reported a decline in their business conditions between 2023 and 2024, while only 9% saw an improvement. The overall business sentiment is now more pessimistic than it was following the onset of the Covid pandemic in 2020 or the war in Ukraine in 2022.
Looking ahead, German businesses expect stability in 2025, though at the same low level as 2024. Political uncertainty in Germany and globally may impact these expectations, with the greatest risks identified for export businesses, followed by supply chain challenges and local issues specific to Germany. In this context, Germany’s appeal as a business hub has further diminished, with the United States and other EU countries emerging as more attractive alternatives.
To boost resilience, 16% of German companies adopted de-risking measures in 2024, a 4-point increase compared to 2023. Additionally, 29% of respondents plan to implement similar strategies over the next three years, particularly in export-heavy sectors like machinery, ICT, and pharma-chemical industries.
Learn more here: https://www.coface.com/news-economy-and-insights/germany-corporate-payment-survey-2024-simmering-under-the-lid
