Recruit Sales in Germany Update Bulletin May 22 Bulletin
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Recruiting in Germany Bulletin
Welcome to our May 2022 Recruiting in Germany Bulletin.
Some facts about Germany
· Germany has a population of eighty-one million people.
· Germany is the seventh-largest country in Europe. Covering an area of 137,847 square miles, of which 34,836 square miles is covered by land and 3,011 square miles contains water.
The economy of Germany is a highly developed social market economy. The country accounts for about 28% of the euro area economy according to the IMF. Germany is one of the largest export nations in the world.
In Germany the share of industry in gross value added is 22.9 per cent, making it the highest among the G7 countries. The strongest sectors are vehicle construction, electrical industry, general engineering, and the chemical industry.
Medium-sized enterprises form the heart of the German economy. In other words, companies with an annual turnover of less than fifty million euros and less than five hundred employees. This sector of the economy embraces 99.6 per cent of German companies. More than 1,000 of these companies are so-called hidden champions, i.e., often publicly less well-known international market leaders.
· Germany is one of the world’s largest motor car producers. China and the USA are the two biggest markets.
· Germany is the world’s premier location for organising international trade fairs. Two-thirds of the major global industrial events take place in Germany. Ten million visitors attend around 150 international trade fairs and exhibitions each year
· Germany is also a founding member of the European Union and the Eurozone.
· If you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.
GERMAN ECONOMIC INDICATORS May 2022
The gross domestic product (GDP) rose by 0.2% in the first quarter of 2022 on the fourth quarter of 2021 after adjustment for price, seasonal and calendar variations. Economic performance thus increased slightly in the first quarter of 2022, following the recovery of the German economy last summer.
However, the German government will cut its growth forecast for Europe's biggest economy for 2022 to 2.2% from 3.6% amid the war in Ukraine, according to a government source.
After two years of the coronavirus pandemic, the Germany economy faces new risks due to the war in Ukraine, which is likely to have an impact on prices and supply chains, according to the new forecast. A knock-on effect is inflation which currently stands at 7% due in part to rising energy and food costs.
Concerns about energy shortages and high energy costs on economic growth could dampen the outlook further, the source said. Russia, heavily sanctioned over its invasion of Ukraine, is the dominant supplier of gas to Germany, and the war has sent energy prices soaring.
Overall, economic output is likely to have increased in the first quarter of 2022. In March, however, there was an economic setback, which is likely to dampen the positive overall balance of the winter quarter. Industrial production took a major hit as a number of large companies cut back production and ramped up short-time work. Retail sales are also likely to have suffered from the sharp rise in energy prices. Overall, the rise in consumer prices in the first quarter alone is estimated to have resulted in a loss of purchasing power of around EUR 6 billion.
The sharp drop in German exports in March is the first hard evidence of the impact the war in Ukraine is having on the German economy. German exports fell sharply and dropped by 3.3% month-on-month in March 2022.
Looking ahead, despite richly filled order books, the short-term outlook for German exports doesn’t look encouraging. New lockdowns in China and a continuation of, instead of easing, last year’s supply chain disruptions will leave significant marks on German industry. According to a recent Ifo survey, almost half of all German companies are dependent on imports from China.
Export sales to Russia sank 62.3% due to sanctions imposed. Shipments to the EU went down 1.7%, sales to countries outside the EU decreased 5.1%, namely to China (-4.3%) and the UK (-3.9%) while those to the US increased 3.2%.
*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.
We will continue to check the news reports and will provide monthly summaries of the trends