Competitiveness

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The export sector suffered a severe setback in 2009, catching up will take a long time.

But the German export industry is on the road to recovery. This is how BDI President Hans-Peter Keitel characterises the foreign trade situation. According to a recent BDI industry survey, industrial exports have fallen sharply in the course of the crisis in all regions of the world and in all industry sectors.

For the entire year, exports are expected to decline by about 18%. Annual growth rates during the years preceding the crisis were around 8%. According to the survey, exports are expected to grow by four percent in 2010. "Given this rate of growth, pre-crisis levels will not be reached before 2014."

The German export sector is still facing a number of risks. The expansive monetary policy pursued by central banks can result in new financial bubbles, and banks' balance sheets still show a substantial need for further write-downs. Furthermore, economic stimulus packages have ended in several countries. Also, protectionist tendencies are increasing globally – some of them well hidden in financing instruments or "buy national" provisions contained in economic stimulus packages.

With respect to the agenda of the new German federal government, Keitel stated that it has set the right course for reviving exports. "The critical challenge now is to implement these measures in order to assist exporters in quickly regaining their footing on world markets." The main priority in the near term is to improve the export credit insurance instruments and the availability of export credits.