Germany is Sweden’s most important trading partner and offers a vast attractive market where sustainability solutions are in high demand. There are today more than 1,500 Swedish companies active in Germany, many of whom are facing tough challenges in the wake of the coronavirus crisis which, like elsewhere, has wreaked havoc on the economy.
Economic output collapsed by 16 per cent as Germany went into lockdown to stem the spread of Covid-19 supply chains were disrupted in multiple industries. The German government has responded in full force – unleashing the largest economic aid package in the country’s history amounting to approximately EUR 820 billion.
Despite the slowing growth and challenging outlook, Swedish companies can look back on a profitable year in 2019, as reported in the results of this first ever Business Climate Survey for the German market. Some 80 per cent of companies considered to be mature in their development confirmed profitability for last year the survey shows.
At the same time, widespread uncertainty due to the virus outbreak has put a damper on investment plans which comes as no surprise. Some 38 per cent of Swedish companies in Germany are planning to scale back their investments slightly or even significantly. What does this mean for future business prospects in Europe’s largest economy?
This report reveals the results from our Business Climate Survey which reflects the views of 88 Swedish companies in Germany, of which 50 per cent were large companies.
About the survey
The Business Climate Survey is produced on a bi-annual basis by Team Sweden, a joint initiative where Business Sweden collaborates with Sweden’s local embassies, consulates and chambers of commerce around the world, among other stakeholders.
The survey provides first-hand perspectives and insights into business trends, issues and challenges in global markets based on extensive interviews with Swedish companies operating in each respective country.