HSBC Navigator provides comprehensive insight into the now, next and how for business, representing the views of over 9,100 business decision-makers across 35 markets. This report gives an understanding of how businesses like yours can continue to grow now and in the future.
Domestic demand picks up the slack from global slowdown
After a decade of outperformance, Germany’s export-driven economy has suffered from the slowdown in global demand. However, domestic demand remains resilient with unemployment at record lows. The robust services sector and easier credit conditions are underpinning growth.1
Workforce the leading factor in growth predictions
German companies are positive about growth but are less bullish than their European peers. More than three-quarters of companies (78%) project business growth in the next five years, compared to 82% worldwide and 89% in Europe.
However, only one-third of businesses in Germany are more optimistic than they were a year ago, a lower proportion than the 47% globally and 41% across Europe. Among European markets, only Belgium is less optimistic.
Workforce issues drive growth far more than in any other market. More than a third of businesses believe workforce motivation, and the quality and availability of skilled labour, are the most important contributors to growth.
More than three-quarters of companies (78%) project business growth in the next five years
|Investing in employee wellbeing||19%|
|Investing in data protection||15%|
|Improving environmental and ethical sustainability||12%|
|Tightening cashflow management||11%|
|Vertical integration or shortening the supply chain||10%|
|Investing in IP protection||10%|
|Investing in better quality raw materials/suppliers||10%|
|Increasing cybersecurity vigilance||8%|
Only 15% of businesses expect growth of 15% or more in the next year compared to 22% globally.
Only a third of German companies expect substantial or total change in their business in the next five years, compared to half of their global competitors.
Nearly a third of German companies will invest in workforce skills to maintain competitiveness against just one in five of their international peers.