00:00Germany's economy is under pressure. Tariffs, high production costs and geopolitical uncertainties
00:06are reshaping its industrial landscape. And as more companies move production abroad,
00:11the question is, how worrying is this trend? In 2022, Germany was still ranked 15th in global
00:18competitiveness. Then it slipped further. Only in 2025 did a slight recovery begin,
00:24back to 19th place, but that's still far from a full turnaround.
00:30We've lost competitiveness, and that's clearly not encouraging.
00:37Growth forecasts for the next five to ten years predict growth of about 0.2% to 0.3%.
00:46That's essentially zero growth. We're not in a strong competitive position.
00:53You can see it especially in industry, where value creation is declining here,
00:58while in other countries it's rising.
01:01This is also reflected in exports, the backbone of the German economy.
01:06Here too, the figures point to a slowdown. After a record year in 2022, German exports dipped,
01:14albeit only slightly. From almost 1.6 trillion euros to just over 1.5 trillion in 2024,
01:22a decline of around 1% year on year. Only last year did they show a modest increase again.
01:32Our exports are no longer performing, even though the rest of the world is actually doing quite well.
01:39And for the first time in many, many decades, Germany's export sector is no longer benefiting
01:44from the global economic recovery.
01:48This is particularly clear in the key sectors of German industry.
01:53Areas that earned solid profits for decades, driven by exports to the rest of the world.
02:03Germany is losing market share in mechanical engineering and the automotive industry.
02:08Germany. These were our global flagship industries.
02:11This was what Germany stood for, what Made in Germany stood for.
02:15And the figures speak for themselves. We're losing market share worldwide, especially to China.
02:21Made in Germany is still made in Germany, but we do face competition.
02:27The quality gap with Asian products is no longer as big as it once was.
02:35According to a study by Deloitte and the Federation of German Industries,
02:40one in five companies has already shifted parts of their production abroad.
02:44The IMD business efficiency rating shows how efficiently companies can operate in each country.
02:51And here's what the data shows.
02:55Germany has slipped from 21st to 35th place in just two years.
03:01It later recovered slightly to 29th, but still remains well below earlier levels.
03:07Perhaps reflecting a broader softening in Germany's attractiveness for companies.
03:18United labor costs are very high in Germany. In fact, they're among the most expensive anywhere.
03:25And although productivity is strong, it's not strong enough to offset these costs compared with our competitors.
03:36On top of that, the country faces high energy prices and heavy bureaucracy.
03:41Together, these factors discourage new investment.
03:47Building a production facility in Germany takes a lot of effort.
03:51There are many regulations to comply with, and getting approval can take a long time.
03:56That creates costs for companies that they wouldn't face in many other locations.
04:02There's a growing concern that the relocation of production could be just the beginning.
04:08That research, development and even corporate headquarters might follow.
04:12A kind of shift that would further weaken Germany's position.
04:19For now, it doesn't look like we're losing our know-how.
04:24But we need to make sure we can hold on to it and keep developing it.
04:31Now it's up to policy makers to ensure that research and development do stay in Germany
04:37and strengthen the country's competitiveness over the long term,
04:41before more firms consider relocating operations abroad.
04:47If you don't, let me know whether to get the benefit of this kind of trust.
04:48Now, in terms of re-calculation, you will receive the best.
04:48You will be able to have the best and vigils for the nation.
04:49The purpose of the trust of God is an adult.
04:50I'll be able to help you to get a job that you can are willing to become a lack of
04:50a relativity,
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