AHK World Business Outlook Autumn 2022
Survey by the Network of German Chambers of Commerce Abroad (AHKs)
Internationally active companies are feeling major challenges in their business environment in almost every corner of the globe. But at least the economic outlook in many regions is not as pessimistic as in Europe and Germany, as the current AHK World Business Outlook shows.
The survey of more than 3,100 German companies active abroad makes it clear:
from the point of view of international German companies, the global economy is facing a frosty winter. The main reasons are the economic consequences of the Russian war against Ukraine and China's zero-covid policy.
According to the survey, almost every second company (47 percent) expects an economic downturn at its respective location. Only in spring 2020, at the beginning of the Corona pandemic, did more companies (65 percent) expect an economic slowdown. In contrast, only 17 percent (spring: 21 percent) expect the economy in their host country to improve in the next twelve months. While the outlook is worsening especially in Europe, companies in the Asia-Pacific region (excluding China), Africa, the Near and Middle East, as well as South and Central America and North America are less pessimistic.
Business development and expectations from companies located in Saudi Arabia
More than 3,100 companies worldwide took part in the survey. We are pleased that 65 replies were submitted from companies located in Saudi Arabia.
Please find summarized key figures that capture some results for the Kingdom of Saudi Arabia here.
Situation robust despite gloomy expectations
Despite less hopeful economic expectations, German companies in international locations are still robust: almost half (45 percent) of the companies, similar to the previous survey (48 percent), report a good business situation. For 45 percent, too, current business is satisfactory. Only every tenth company (spring: 11 percent) reports a poor business situation.
Catch-up effects play a role
"The catch-up effect of order backlogs in industry, the new start for service providers after the end of the Corona restrictions, as well as easing in some places in global supply chains, should not obscure the fact that the strained global economy is also making itself felt among German companies abroad," says DIHK head of foreign trade Volker Treier. "Depending on their respective international markets, however, they find stable, if not even advantageous conditions, which in turn give confidence."
Key findings from the World Business Outlook at a glance
The economic impact of the Corona pandemic and the Russian war on Ukraine poses many challenges for companies in their international locations. Disrupted supply chains and geopolitical risks are prompting them to critically review the resilience of their supply chains and locations. Learn more about how the more than 3,100 companies surveyed by the AHKs as part of the AHK World Business Outlook Fall 2022 are looking for new suppliers or locations.