German exporters lose ground competitiveness in global markets, says Bundesbank

Published 14/07/2025, 11:12
German exporters lose ground competitiveness in global markets, says Bundesbank

Investing.com -- German exporters have lost significant ground in global markets since 2021, primarily due to deteriorating competitiveness, according to a Bundesbank monthly report released Monday.

The report revealed that more than three-quarters of Germany’s export market share losses between 2021 and 2023 stemmed from worsening supply-side conditions that made domestic exporters less competitive internationally.

The decline was widespread across sectors and relatively severe compared to international standards, indicating deep-rooted structural challenges for Europe’s largest economy.

Several industries were particularly affected, including mechanical engineering, electrical equipment, and energy-intensive sectors like chemicals.

Rising energy prices and persistent supply chain disruptions also contributed significantly to the challenges faced by German exporters during the 2021-2023 period examined in the report.

The Bundesbank called for urgent reforms to improve Germany’s business climate. Recommended measures include boosting work incentives, reducing barriers for skilled migrants, cutting bureaucratic red tape, and enhancing tax breaks for private investment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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