German industry lagging in global competition, says Ifo

By Gokhan Ergocun

ISTANBUL (AA) - Germany’s industrial competitiveness is eroding at an unprecedented pace, the Munich-based think tank Ifo warned on Monday.

In January, 24% of German companies rated their competitiveness as low compared to non-EU companies, the institute stated.

Additionally, 21% of companies said competition within the EU is getting tougher.

“We have never seen a slump like this in international competition in such a short space of time,” the head of surveys at Ifo, Klaus Wohlrabe, said in a statement. “The challenges for industry to survive in global competition are huge.”

The think tank added that the loss of international competitiveness spans all areas of German industry.

The automotive industry, which has been losing ground for around two years, has been particularly hard hit.

The situation also remains tense in the metal and chemical industries.

Beverage manufacturers, however, are comparatively stable in terms of international competitiveness.

“The new German government urgently needs to reduce bureaucracy, speed up approval procedures, and provide tax relief for companies in order to boost competitiveness again.

"Targeted measures to combat the shortage of skilled workers are just as essential. What we need now are decisive reforms to prevent German industry from falling even further behind in global competition," Wohlrabe added.