BERLIN, Dec. 16 (Xinhua) — The Federation of German Wholesale, Foreign Trade and Services (BGA) said here on Monday that it expects a nominal increase in turnover of 2.3 percent to 1.33 trillion euros (1.48 trillion U.S. dollars) for 2019.
“In an economically and politically troubled year, we got off with a black eye in economic terms,” said BGA President Holger Bingmann. Wholesale in Germany has been facing a number of serious structural challenges and the business has “continued to lose ground.”
According to the BGA, the mood in the wholesale trade has “slightly improved” but is “far from good.” At 97 points out of 100, the climate indicator remained at summer levels, indicating a negative overall assessment.
Employment growth in the German wholesale sector also continued to slow down. The BGA said the number of employees in the wholesale trade is expected to increase by around 24,000 to almost two million in 2019.
“Since wholesale is an important early indicator of economic development in Germany, this is not a good sign,” the BGA warned. For 2020, BGA expects real economic growth in Germany to reach 0.5 percent.
In 2020, wholesale trade in Germany is projected to develop at a similar pace, with nominal turnover increasing by up to 2 percent, according to the BGA.
The challenges for Germany’s wholesale trade primarily result from “digitization, the energy transition and sustainable resource management,” said Bingmann, who called for “targeted, effective and efficient measures” instead of “deflagrating economic stimulus programs.”