Recruit Sales in Germany Covid -19 Update Bulletin Aug 2020

Recruit Sales in Germany Bulletin

Welcome to our August 2020 Recruiting in Germany Bulletin.

Despite a drop-off in business confidence, Germany is still a strong and attractive market for foreign investors with many foreign companies still looking to expand their businesses here, especially in Nordrhein-Westfalen, Hessen, and Bayern.

NRW.INVEST supports foreign companies with their relocation projects, so that they can make optimal use of the advantages of the location. Most foreign companies that have made a base in this state come from the Netherlands, the UK and the USA.

If you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.

Economic Commentary - what they are saying

GERMAN ECONOMIC INDICATORS in August 2020

Germany's gross domestic product shrank by 10.1 percent on quarter in the April-June period, the most on record and compared to market expectations of a 9.0 percent contraction.

Germany was one of the first countries in Europe to start lifting lockdown measures after the pandemic forced many non-essential businesses to close and people to stay at home for more than a month.

However, a second wave of infections could lead to the re-imposition of more restrictions and hamper the economic recovery. A massive slump was recorded for exports and imports of goods and services as well as for household consumption and capital formation in machinery and equipment. General government, however, raised its spending in efforts to support the economy amid the crisis.

There have been signs in other data that recovery may have started after April. That is suggested by monthly figures for industrial production and retail sales, for example.

The new figures confirm however that Germany has been in recession as the term is often defined - two consecutive quarters of declining GDP.

However, the mood among companies in Germany has continued to improve over the past few months.

The ifo business climate index rose to 90.5 points in July, after 86.3 points (seasonally adjusted) in June. This is the third increase in a row. The companies were noticeably more satisfied with their current situation. They are also cautiously optimistic about the coming months. The German economy is gradually recovering after the battering it took over the past half year..

German Exports

Germany is the third-largest exporter in the world, with exports accounting for almost half of its economic output. Manufactured goods are heavily exported. Exports have inevitably been hit hard by the disruption to international trade that the health crisis has caused.

Exports from Germany tumbled 29.7 per cent from a year earlier to EUR 80.3 billion in May 2020, due to lower sales to the European Union (-29 per cent) and to third countries (-30.5 per cent), in particular to the UK (-46.9 per cent), the US (-36.5 per cent) and China (-12.3 per cent).

On a seasonally adjusted basis, exports rebounded 9 per cent from the previous month, missing market forecasts of a 13.8 per cent jump.

The German Government

Germany has held the Presidency of the Council of the European Union since 1 July. "Together for Europe’s recovery" is Germany’s motto for the six-month Presidency. It will involve working together to address the challenges of the COVID-19 pandemic with a view to the future.

Chancellor Angela Merkel has been shocked by the explosion in Beirut with more than 100 dead and thousands injured. The Foreign Office is currently examining what help Germany can offer.

As Germany’s presidency of the UN Security Council draws to a close, Federal Foreign Minister Heiko Maas has given a positive assessment despite the difficult circumstances.

Helge Braun, Head of the Federal Chancellery, has called on everyone in Germany to continue to respect the fundamental rules in order to contain the COVID-19 pandemic. The number of new cases has risen again recently (August), giving grounds for concern, he said. It is important that travellers returning from high-risk areas fully comply with quarantine regulations.

Compiled by SA in August 2020 from various public and widely available news sources and articles.

*Please note the information contained herein is an aggregate of news stories, by commentators widely available - readers should seek independent verification, and this in no way represents the views or opinions of Standley Associates.

We will continue to check the news reports and will provide monthly summaries of the trends