Our Navigator research provides you with valuable insights and opinions from businesses around the world. As part of that research, we asked more than 10,000 business decision-makers across 39 markets, countries and territories to tell us how the current crisis has affected them and changed their plans for the near to mid-term future.
The German government’s response to COVID-19 has been impressive, both in terms of public health and fiscal support. The latest fiscal package in June included VAT cuts to boost spending and employment. Shortly before our 2020 Navigator survey opened, it also extended its short-time working scheme and relaxed its corporate insolvency law. But unemployment and corporate bankruptcies could rise when these initiatives end, hampering recovery in 2021. And as everywhere, further waves of COVID-19 pose an ongoing threat.
German expectations of business growth have waned in the wake of COVID-19. As a result, companies are taking a more cautious approach to future investing than their global peers. However, the proportion adapting to the new normal mirrors the global figure, achieved through focusing on entrepreneurialism, competitiveness and customer-centricity.
Looking ahead, intra-regional trade remains dominant, with fewer German businesses anticipating an upswing in international trading. Supply chains are a concern, with priority given to suppliers within home regions that can deliver fast, plus improved security, cost reduction, and lower exposure to one single market.
Although generally seen as good for business, Germany’s engagement with sustainability is lower than globally. Pressure from consumers and governments, among other influences, is likely to increase the focus.
|Adapting to a changing environment||58%||58%|
|Thriving in the new normal||32%||24%|