German companies at their international locations are more positive about the future than they were in autumn 2022. However, expectations remain subdued - this is shown by the assessments of the more than 5,100 companies surveyed by the German Chambers of Commerce Abroad (AHKs) in spring 2023.
From the perspective of German companies at their international locations, there is no powerful upswing in sight for the global economy, according to the "AHK World Business Outlook Spring 2023".
A variety of risks cloud the economic outlook: The top 3 risks include the shortage of skilled workers (40 percent of respondents, an all-time high), economic policy conditions (39 percent) and demand (38 percent). Despite the challenges, companies are showing resilience: one in two assess their current business situation as good, and 47 percent expect better business in the coming twelve months.
Optimism in North America
German companies in North America (Canada, USA, Mexico) are more optimistic than in most other regions. Business expectations are above average in a global comparison (balance 46 points), which is reflected in expansive investment intentions (balance 30 points) and employment intentions (balance 38 points).
Excellent current business situation in Canada
Consistent with the previous survey, the majority of companies in North America report a good business situation. Almost two-thirds (64 percent) of the companies currently have good business, 31 percent satisfactory and only five percent poor (balance of 59 points). With a balance of 73 points, Canada showed the second-best assessment of the current business situation of all countries after Lithuania (78 points).
The future business expectations of companies in Canada are overall positive with a balance of 40, but below those of German companies in the US and Mexico. Regarding the outlook for economic growth in Canada however, companies are still slightly pessimistic (balance minus three points).
Top risks in Canada: Labour shortage, demand, supply chain disruptions
German companies in Canada are particularly concerned about the lack of skilled workers (50 percent) and rising demand (40 percent), and supply chain disruptions (40 percent), according to the survey. Inflation is regarded as the greatest geopolitical challenge in Canada in the next 5 years (70%) followed by Digital transformation (43%).
Read the full report: AHK World Business Outlook Spring 2023 (dihk.de)
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