German Trade Associations Unanimously Expect 2022 Growth

Talk about consensus. In a survey of 48 of Germany’s leading trade organizations, the German Economic Institute (IW) found that all expected production or turnover to grow or remain constant in the new year. It’s the first time the annual survey has returned such a positive result.

IW head Michael Hüther identifies a trip of reasons for the optimism. In an interview with business newspaper Handelsblatt, he stressed: “Catch-up effects, since the [economic] level of before the corona pandemic hasn’t be regained yet. Secondly, a recovery from the lack of raw materials and larger delivery delays. And thirdly historically high order levels.”

Four industries expect particularly robust growth according to IW: machinery, steel, metalwork and the automotive sector. Important industries like chemicals, pharmaceuticals, aerospace, electronics, construction, retail, tourism and property all anticipated more business.

In a separate IW survey of 2800 individual businesses in November, almost halt of respondents reckoned business would improve in 2022, compared with 15 percent that were pessimistic.