June 2022 INDUSTRIAL POLICY DOSSIER
Industry Report Industrial production and trade in the individual industries
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Industry expects manufacturing output in Germany to increase by two percent. This forecast is based on the assumption that supply bottlenecks will be resolved in the second half of the year and that energy supply remains secure.
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Mixed picture for manufacturing sector in the European Union. While pharmaceuticals, electrics and electronics, and the European machinery manufacturing industry recorded double-digit growth in production, vehicle production failed to increase output for the fourth consecutive year.
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In 2022 overall, German goods exports expected to increase 2.5 percent in real terms. The BDI had forecast four percent growth in January. The zero-Covid strategy of the Chinese government has put pressure on the supply and value chains of German industry. Steep increases in non-energy commodity prices and fossil fuels, only a part of which can be passed on to customers, are adding additional strain and increasingly becoming a competitive disadvantage for affected economies.
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We expect world trade to increase by five percent in 2022. Goods exports from advanced economies anticipated to grow substantially slower than exports from emerging economies.
