German industry is bracing for a tougher 2022 as lockdowns in China and the war in Ukraine exacerbate ongoing supply chain problems, prompting two associations to downgrade their forecasts for the year.
The engineering association VDMA cut, this Monday (30), its perspective of growth of the production of machines for the second time.
Now, it expects production of industrial machinery bearing the “Made in Germany” label to grow 1% this year, having already lowered its forecast from 7% to 4% two months ago.
Last year, production grew by 6.4%.
Industry association BDI, meanwhile, said it now expects exports to grow by just 2.5% this year, after forecasting a 4% rise in January.
The lower forecasts occur despite the fact that many companies have several orders backlogged, as they face difficulties in fulfilling them: a survey by the IFO institute showed that 77.2% of companies complained of bottlenecks and problems in the acquisition of intermediate goods and raw materials.
One in two companies affected by material shortages said lockdowns in China had made the situation even worse than before, the IFO survey, also published on Monday, showed.
VDMA chairman Karl Haeusgen said in a statement that before the invasion of Ukraine, 80% of companies described their business prospects in Russia as good or satisfactory.
Now 75% expect deterioration in the next six months or want to leave Russia altogether.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
