Germany is losing industry: companies are fleeing due to bureaucracy and energy prices

One in five companies intends to leave Germany due to high energy prices and excessive bureaucracy. According to the study, 60% of top managers consider their enterprises uncompetitive, and 6 out of 10 assess the level of competitiveness as medium or low. 

Against the background of this trend, production, research and investments are actively moving outside the country, which highlights the process of deindustrialization. Today, about 8 million people are employed in the industrial sector, but since 2019, production has decreased by more than 10%.

Subsidized competition from the United States and China is putting additional pressure on German companies. At the same time, the share of organizations suffering from excessive government regulation increased from 55% to 75%. The situation is aggravated by high energy costs and rising labor costs. 

As a result, more than half of companies rate Germany's competitiveness as low or extremely low. Experts warn that without urgent reforms, gross value added will continue to fall, and a decisive government policy will be required to reverse the negative trend.