the German economy is slowly pointing to growth again. As recently as in autumn 2022, the institutes had expected the energy crisis to lead to a recession this year. Now they expect gross domestic product to grow by 0.3% year-on-year. In April, exports grew by 1.2% compared with March, adjusted for calendar and seasonal effects, to 130.4 billion euros. Exports to China grew particularly strongly by 10.1% to 8.5 billion euros. Also, due to falling gasoline prices and the launch of the 49-euro ticket, inflation in Germany weakened significantly in May. The rate fell to 6.1%, the lowest level since March 2022.
However, the automotive industry in Germany and Europe is facing challenges such as disrupted supply chains and rising energy prices, while also looking ahead with confidence to the development of e-mobility. Talking of e-mobility, cities like Düsseldorf, Hamburg, and Munich are at the forefront of reducing greenhouse gas emissions, playing a crucial role in the fight against the climate crisis. You can find more insights in our Net Zero Readiness Report below.
Climate protection as well as geopolitics will also be part of KPMG in Germany’s flagship event "Zukunftsgipfel 2023" today (in German language). Reknown experts from various industries and institutions will be discussing current economic topics. I personally will participate in an esteemed panel discussion on realigning business strategies in the wake of geopolitical challenges today at 12:40 p.m. (CEST). The Group CFO of BASF and the Director General at the Federation of German Industries (BDI e.V.) will join me in what I believe will be an insightful event. I would very much appreciate you joining the discussion, as well.
Wishing you an informative read!
Best regards,
Andreas Glunz
+49 211 475-7127
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ECONOMIC UPDATE Recovery of the German economy continues
Germany is the fourth largest economy in the world after the United States, China and Japan and the largest economy in Europe. It is the third largest export nation globally: With 70% the service sector contributes the largest part to the country’s GDP.
The German government has slightly increasedits economic forecast for this year. It now expects gross domestic product to increase by 0.3% in 2023. In January it had still assumed 0.2%.
Learn more about the state of the German economy.
KPMG GLOBAL AUTOMOTIVE EXECUTIVE SURVEY European car industry looks confidently to the development of e-mobility
The global automotive industry has been in a phase of fundamental change for several years: Sales channels are changing, digitalisation is leading to new products and processes, and climate-friendly powertrains are
