Global markets are characterised by uncertainty, and this is being felt by German companies around the world. Geopolitical tensions, rising energy prices and disruptions in supply chains have dampened expectations for economic development, according to the latest AHK World Business Outlook from the German Chamber of Industry and Commerce, DIHK.
The survey is based on responses from around 4,500 German companies with activities abroad, as well as companies with close ties to Germany. Globally, more companies now expect a deterioration rather than an improvement in economic conditions in their international markets over the coming year.
The global business climate is described in the report as fragile and difficult to predict. The conflict in the Middle East in particular weighs heavily in the assessment, as it increases uncertainty regarding energy, raw materials and transport routes.
Denmark stands out positively
In Denmark, the picture is different. Here, German companies assess their situation significantly more positively than the global and EU average. More than half of the German companies surveyed in Denmark describe their current business situation as good, while only a smaller proportion assess it as poor.
Five important numbers
• 4,500
The number of companies with German ties that took part in the survey.
• 32 per cent
The share of companies globally expecting a deterioration in economic development over the coming year.
• 21 per cent
The share globally expecting an improvement.
• 46 per cent
The share pointing to energy prices as the biggest business risk.
• 52 per cent
The share of German companies in Denmark assessing their current situation as good.
Expectations for the coming year are also higher in Denmark. More companies expect progress than decline, and when it comes to investment, the survey also points to a more positive development than in the rest of the EU.
This has prompted the Danish-German Chamber of Commerce to highlight Denmark as a stable market at a time when many companies have otherwise become more cautious.
"While the global markets are under pressure, Denmark is demonstrating its strength as a stable, reliable and attractive market for German companies. The close and trusting economic cooperation between Germany and Denmark shows its value especially in challenging times: it creates stable framework conditions and continues to open up attractive prospects for dynamic growth and shared development for companies on both sides of the border," says Andreas Wenzel, Chief Executive Officer of the Danish-German Chamber of Commerce.
At the same time, the international survey shows that companies are increasingly adapting to a more unsettled global economy. Many are working with broader supplier networks, new markets and a stronger local presence to reduce dependence on individual countries, suppliers and transport routes.
