The global framework conditions for our industry could not be much worse. The war in Ukraine is putting a strain on our budgets not only this year, but also in the long term in a dimension that is currently unforeseeable. The Gaza conflict threatens to develop into a conflict with the Arab world that extends beyond the regional borders of the Middle East. The first signs of this can be seen on the oil markets and are placing an additional burden on our industry, which is already struggling with high energy costs. Houthi rebels are severely disrupting international shipping with their attacks on merchant ships in the Red Sea and in the Strait of Bab al-Mandab and have recently caused supply chains that had been painstakingly reinstalled to break again.
In this situation, the OECD is forecasting a slowdown in global economic growth in 2024 compared to 2023. It is forecasting growth of 2.9% for the global economy this year. In 2023, it was still 3.1 percent. The German government expects GDP to grow by just 0.2% this year and is revising its forecast from fall 2023 downwards by a significant 1.1%. Growth of 1.0% is expected in 2025. This means that Germany is stagnating and is behind other economic nations such as the USA, which is expecting growth of 2.9%. The eurozone is also above the German level with a growth expectation of 1.5%.
There is no question that we cannot be satisfied with this. There is a need for action and this has also been clearly addressed to the government by the German industry associations. A noticeable reduction in bureaucracy, accelerated approval procedures, stability in energy costs and the accelerated promotion of digitalization and new technologies such as AI are the cornerstones of necessary political action.
The aim must be to create a framework in which our industry can demonstrate its performance and international competitiveness.
The Hannover Messe, which will take place from April 22, 2024, will give an impression of this still high and internationally significant, innovative and respected performance. A total of 4,000 exhibitors, including more than 300 start-ups from the mechanical engineering, electrical and digital industries and the energy sector alone, will present their entire range of services under the motto “Energizing a Sustainable Industry” and showcase solutions for an efficient and sustainable industry. Norway has been selected as a partner country that plays a pioneering role in e-mobility and low-carbon industrial solutions among industrialized nations and has become a preferred and attractive location for companies.
As in previous years, this showcase of the German economy will provide valuable impetus that will contribute to a stronger economic development.
We would like to thank all the authors for their contributions and wish you, dear readers, a stimulating read with this latest issue of Unternehmen & Trends.
Your editors
Dr. Rudolf Müller and Elisabeth Klock
