The political uncertainty around the globe is currently seen as the greatest challenge by German companies’ CEOs. This is the result of a joint survey by IW Consult and The Conference Board. Worries about a global recession are less common among German managers than in other countries.
In addition to global uncertainty, German decision-makers are primarily concerned about the future personnel development in their companies: the search for and the development of future executives plays a crucial role. European financial stability, increasing terrorism, cybersecurity and violence are the following most pressing topics for the interviewed German executives. Significantly less attention is devoted to the effects of Brexit, climate change and weak economic growth in emerging markets.
The IW Consult survey for Germany is part of a global survey of the The Conference Board, an international business network. More than 500 CEOs responded to the survey. The concerns of German managers differ substantially from those in other countries - for example, when it comes to the risk of a global recession, which is given little attention in Germany. Globally, however, this concern ranks first among CEOs.
"The results of the survey show that violence, terrorism and the increasing political uncertainty in the world do not leave German companies untouched," says IW Director Michael Hüther. "At the same time, it is clear that the German economy is resilient and that there is no reason for exaggerated fears of a new economic crisis."
The global survey, which took place between September and October 2016, involved CEOs from all industries and from medium-sized companies as well as large corporations from 35 countries.
The possibility of global recession is the number one hot button issue for CEOs around the world but ranks only 7th in Germany.
In 2021, German unit labour costs were an average of 13 per cent higher than in the 27 countries in our comparison and 8 per cent higher than in other countries in the Eurozone.
The demands of digitalisation and climate protection are creating an additional need for fundamental renewal of Germany’s capital stock.