Geopolitical Uncertainty Impacts German Business Planning
A recent survey by international credit insurer Atradius indicates that geopolitical tensions are increasingly affecting strategic planning for German companies. Over half of businesses surveyed reported a decline in economic predictability over the past year.
Geopolitical tensions are increasingly impacting strategic planning for German companies, according to a recent survey by international credit insurer Atradius. More than half of the businesses surveyed (55 percent) reported a deterioration in their economic predictability over the past twelve months.
Thirty-six percent of companies indicated that geopolitical developments strongly influence their decisions, with an additional 50 percent seeing at least partial effects. Despite growing uncertainty, many firms feel inadequately prepared for geopolitical crises, with roughly half rating their preparedness as critical. Overall economic resilience was rated an average of 5.2 out of 10.
In response to rising uncertainty, companies are primarily focusing on operational measures. Adjustments to pricing strategies (48 percent), enhanced risk management (39 percent), and building liquidity buffers (38 percent) were the most frequently cited actions. Structural measures, such as regionalizing supply chains or limiting investments, have played a lesser role so far.
The survey, conducted in March 2024, gathered responses from nearly 200 German companies across various sectors. The findings highlight a discrepancy where businesses recognize risks but feel insufficiently equipped to manage them.