German Exports Sluggish Amid Global Uncertainty

German exports are projected to stagnate this year as Europe's largest economy grapples with supply chain disruptions and uncertainties linked to the Iran war, according to the German Chambers of Industry and Commerce (DIHK). This marks a shift from DIHK's earlier prediction of a 1.0% growth in exports.

Volker Treier, DIHK's head of foreign trade, highlighted the global economic crisis's direct impact on businesses, with 46% of 4,500 surveyed German firms operating abroad identifying high energy prices as a primary risk, more than double the number from autumn 2025. Additionally, 40% cited supply chain disruptions and 37% mentioned raw material prices as significant challenges.

The survey, named AHK World Business Outlook, indicates a growing pessimism among businesses regarding the medium-term economic landscape, with 32% expecting worsening conditions within a year. The findings underscore how the Iran war has exposed vulnerabilities in global supply chains, affecting companies differently based on their geographical operations.

(With inputs from agencies.)