BERLIN, Oct. 5 (Xinhua) -- German companies must adapt their business strategies in response to slowing globalization, according to a study published by Germany's development bank KfW on Tuesday.
The future of globalization and international trade seems uncertain, as the COVID-19 crisis could bring longer-term changes in trade policy and corporate trade relations, the study found.
A strong export sector has been one success factor for the German economic model in recent years. Around one in three jobs, or 12.6 million employed people, and 31 percent of gross value added depended directly or indirectly on the country's export business in 2019, the study said.
"There are some indications that globalization will proceed at a slower pace once the coronavirus crisis has been overcome," said Fritzi Koehler-Geib, chief economist at KfW. "German companies should address this development and think about alternative growth strategies."
If globalization continues as slowly as it has since 2010, Germany's real gross domestic product (GDP) will only grow by an average of 1.1 percent annually between 2023 and 2030. Between 1990 and 2018, the country's GDP per capita grew by an average of around 1.4 percent every year.
In order to tap new sales potential, German companies should focus more on domestic demand in the trending areas of demographic change, digitization, and climate and environmental protection. For the country's export markets, companies should look to develop new, innovative products and services.
The study was carried out by Prognos economic research center, commissioned by KfW. (1 euro = 1.16 U.S. dollars) Enditem