Germany: economic recovery

Written by David Fletcher 02 Jul 2021
Germany: economic recovery

Coronavirus restrictions are easing, and Germany’s economy is picking up as traders and service providers benefit, but industry suffers delivery problems. Global lockdowns have lowered production levels and interrupted supply chains. Essential raw materials, chemicals and component parts are in short supply and prices are skyrocketing. There are disruptions in container shipping, traffic congestion in ports and a shortage of containers, where three consortia control over 80% of the world market and dictate prices. For various reasons, the highest inflation since 2008 is on the horizon. In addition to the CO2 tax, world market prices for grain, which have risen 30%, are already raising the cost of living. Germany is an exporting country, dependent on international value-added trade-chains. There is now changed thinking concerning regional supply chains within the EU: now, instead of ‘just in time delivery’, storing becomes important.

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