Published by Global Banking & Finance Review®
Posted on July 14, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleGerman exporters face declining competitiveness, losing market share due to supply-side challenges, reports Bundesbank. Urgent reforms are needed.
By Maria Martinez
BERLIN (Reuters) -German exporters have lost significant ground in global markets since 2021 due mainly to a broad-based deterioration in the country's competitiveness, the Bundesbank said on Monday.
According to the Bundesbank's monthly report, more than three-quarters of Germany's export market share losses between 2021 and 2023 resulted from worsening supply-side conditions that left domestic exporters less competitive internationally.
The report found that the decline was widespread across sectors and comparatively severe by international standards, signalling deep-rooted structural challenges for Europe's largest economy.
Industries such as mechanical engineering, electrical equipment and energy-intensive sectors like chemicals were among the hardest hit, according to the report.
The study also pointed to the impact of rising energy prices and persistent supply chain disruptions, which weighed heavily on German exporters during the 2021-to-2023 period covered by the report.
The report called for urgent reforms to improve Germany's business climate, including measures to boost incentives to work, reduce barriers for skilled migrants, cut red tape and enhance tax breaks for private investment.
The findings come after the German government unveiled a series of measures aimed at boosting investment and innovation, but analysts warn that more comprehensive reforms may be necessary to restore the country's competitive edge on the world stage.
(Reporting by Maria Martinez and Klaus Lauer, editing by Rachel More)
The Bundesbank reported that more than three-quarters of Germany's export market share losses from 2021 to 2023 were due to worsening supply-side conditions.
Industries such as mechanical engineering, electrical equipment, and energy-intensive sectors like chemicals were among the hardest hit.
Rising energy prices and persistent supply chain disruptions have significantly weighed on German exporters during the specified period.
The report calls for urgent reforms to enhance Germany's business climate, including boosting work incentives, reducing barriers for skilled migrants, and cutting red tape.
The German government has unveiled a series of measures aimed at boosting investment and innovation, but analysts suggest that more comprehensive reforms may be necessary.
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