AHK World Business Outlook Autumn 2017 Results

23.11.17 AHK News

Overview

The continuing growth of the global economy ensures good business for German companies in foreign countries. The current economic situation as well as expectations of German businesses and the member firms of the German Chambers of Commerce Abroad (AHK) remain at a high level. The worldwide upswing is based on many pillars – however, stability is at risk. That is one of the reasons why there is a slow economic development in some countries. 

Asia is Growing Dynamically

The Asian market is growing dynamically. German companies are still positive regarding China and other Asian countries. High growth rates and rising consumption ensure good business in the region. Due to their high export intensity, many Asian economies benefit from world trade’s recovery and high import demand from China. Businesses plan to increase investments and employment substantially.

The Philippines: A Robust Economy

With almost seven percent of economic growth this year, the Philippines is one of the strongest economies within Asia. The service sector remains to be the main engine of economic growth, supported by increasing production and infrastructure investment.

German companies based in the country expect the development to continue throughout the following years. The companies' own economic position as well as expectations about future businesses was positively rated. Investments are seen to increase. Only employment plans are seen to be less in the future. The government also plans massive investments in infrastructure as well as a new tax reform to foster foreign investments.

DIHK President Eric Schweitzer on the release of the AHK World Business Outlook (WBO):

"Economic growth and world trade have recently regained momentum. This positive development continues into next year. Nevertheless, there are also dark clouds. The DIHK sees some risks in its AHK World Business Outlook. After that, German companies continue to be very successful in many parts of the world – especially in China and Europe.

Trade barriers or current political developments such as Brexit are increasingly restricting their business actions. Add to this the uncertainty about future economic relations with Germany's largest exporting country USA - especially against the background of the protectionist statements of US President Trump. Also, many second row countries’ economy is growing slowly, due to political regulations.

According to the AHK World Business Outlook, every second company worldwide sees a risk to their own business in terms of economic policy conditions. Unnecessary bureaucracy, trade barriers or protectionist measures prevent higher growth. Additionally, already existing successes of economic collaborations are doubted: According to the current state of affairs, Brexit will considerably restrict the business of German companies. Also, the NAFTA renegotiations foster companies’ uncertainty about the future of global trade.

Therefore, it is important that EU trade agreements with Japan and Mercosur quickly reach a comprehensive agreement. The federal government should support a strengthening of the WTO at the upcoming ministerial meeting.”

The AHK World Business Outlook - Autumn 2017 survey results is currently available only in German. You may find it attached below this article.