Weak export markets and home-made problems: The economic slump in Germany and its effects on Swiss companies

Weak export markets and home-made problems: The economic slump in Germany and its effects on Swiss companies

According to a report by www.economiesuisse.ch, the results of the current survey by economiesuisse show that sales problems are increasing at home and abroad and are now the most important obstacles to growth. These difficulties are particularly noticeable in the export market, with 62 percent of the companies surveyed reporting sales difficulties in exports. The economic downturn in Germany, the most important sales market behind the USA, is particularly worrying. The economy in Germany is weakening, and Swiss companies are also feeling the effects.

There are many reasons for the economic downturn in Germany. The German economy is heavily export-oriented and is suffering from the weak economy in important export markets, as well as protectionist measures and disrupted supply chains. Added to this is weakening domestic demand due to consumers' dwindling purchasing power. The energy policy situation in Germany is making the situation even worse. The dependence on gas imports from Russia and the rising energy costs as a result of the energy transition are putting a strain on households and companies. The high energy costs make Germany unattractive as an industrial location and lead to outflows of direct investment.

This development in Germany has a direct impact on the Swiss economy, especially on export-oriented companies. The reduced demand and the weak economy in Germany represent major challenges for Swiss exporters. In addition, the negative developments in Germany and the international export markets could also have an impact on the global financial markets, as the uncertainties in the economy could impact investment decisions.

Overall, the results of the economiesuisse survey show the increasing difficulties in the export-oriented sector of the Swiss economy. The developments in Germany in particular are casting a shadow over the future prospects of export companies and could also bring further uncertainty for the financial markets. It remains to be seen how the economic situation in Germany will develop and what measures will be taken to mitigate the negative effects on export-oriented companies.