Monday 29 March 2021
Economic recovery abroad
Industry relies on rapidly increasing exports
Sectors such as retail and the hotel industry are groaning under the months-long lockdown. The export-oriented German industry, on the other hand, is bursting with optimism – the reason is the increased demand in important markets such as the USA and Asia. But not everyone benefits from this.
According to the Ifo Institute (Leibniz Institute for Economic Research at the University of Munich), there is great confidence among German exporters. The export expectations of the industry rose from 11.9 points to 24.9 points in March and thus to the highest value since January 2011, said the Munich researchers. “The export economy is benefiting from a strong economy in Asia and the USA,” said Ifo President Clemens Fuest. “The euro area is also slowly gaining momentum.”
In almost all branches of industry, companies are therefore more confident about their foreign business. The electrical industry is hoping for a significant increase in export orders. The same applies to mechanical engineering, where the barometer has climbed to its highest value since November 2017. “The automotive sector also remains optimistic,” emphasized Fuest. “The furniture industry has turned the corner – after two months with noticeably more pessimistic prospects, hope is now growing again.” On the other hand, companies that manufacture clothing and shoes are expecting declining sales.
The mood of companies in Germany has recently brightened surprisingly, despite the third corona wave, as the Munich institute announced on Friday for its survey of 9,000 managers. The Ifo business climate index rose in March by 3.9 to 96.6 points, the highest level since June 2019.