Country report Germany 2018

Country Report

  • Germany
  • Agriculture,
  • Automotive/Transport,
  • Chemicals/Pharma,
  • Construction,
  • Consumer Durables,
  • Electronics/ICT,
  • Financial Services,
  • Food,
  • Machines/Engineering,
  • Metals,
  • Paper,
  • Services,
  • Steel,
  • Textiles

15th May 2018

Economic expansion remains broad-based, driven by private consumption and business investments, while export growth is sustained by the eurozone demand.

Germany trade
Germany key figures

 

Germany sectors

 

The insolvency environment

Fewer insolvencies, but increased outstanding claims in 2017

Germany’s consistent economic performance since 2010 has resulted in another decrease in business failures. In 2017 business failures decreased by 6.6%, to about 20,000 cases. At the same time, creditors´ outstanding claims increased to EUR 29.7 billion in 2017 from EUR 27.4 billion in 2016, as more larger and economically relevant businesses failed in 2017.

Germany insolvencies

 

Economic situation

The economic expansion continues to remain broad-based

The German economy remains resilient, with a solid growth rate of 2.4% forecast for 2018. The economic expansion remains broad-based, driven by private consumption and business investments, while export growth is sustained by the eurozone demand.

Both consumer and business sentiment are high, while credit growth remains solid. However, the appreciation of the euro is slowly turning into a headwind for export growth to destinations outside of the eurozone.

The uncertainty over the outcome of the Brexit negotiations casts a shadow, as the United Kingdom is Germany´s third largest export market. Any disruptions of global trade caused by protectionist measures (e.g. triggered by US economic policy shifts) would also pose a downside risk for the German economy.

The federal government has achieved slight budget surpluses since 2015, largely due to higher tax revenues and lower government transfer payments for unemployment. In 2018 and 2019 the budget surplus is expected to be maintained.

 

Disclaimer

Each publication available on or from our websites, such as, but not limited to webpages, reports, articles, publications, tips and helpful content, trading briefs, infographics, videos (each a “Publication”) is provided for information purposes only and is not intended as a recommendation or advice as to particular transactions, investments or strategies in any way to any reader. Readers must make their own independent decisions, commercial or otherwise, regarding the information provided. While we have made every attempt to ensure that the information contained in any Publication has been obtained from reliable sources, Atradius is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information in any Publication is provided ’as is’, with no guarantee of completeness, accuracy, timeliness or of the results obtained from its use, and without warranty of any kind, express or implied. In no event will Atradius, its related partnerships or corporations, or the partners, agents or employees thereof, be liable to you or anyone else for any decision made or action taken in reliance on the information in any Publication, or for any loss of opportunity, loss of profit, loss of production, loss of business or indirect losses, special or similar damages of any kind, even if advised of the possibility of such losses or damages.