German industry lagging in global competition, Ifo says

Germany's industrial competitiveness is declining at an unprecedented rate, warned the Munich-based Ifo institute. In January, 24% of German companies rated their competitiveness as low against non-EU firms, while 21% noted growing competition within the EU.

Ifo’s Klaus Wohlrabe highlighted the severity of the decline, stressing the urgent need for reforms. The downturn affects all sectors, with the automotive, metal, and chemical industries particularly impacted, while beverage manufacturers remain relatively stable.

To restore competitiveness, the government must cut bureaucracy, speed up approvals, offer tax relief, and address skilled labor shortages, Wohlrabe urged.

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