Lower Thirds:

0:02 	Report by Marta Grudzinska 
00:14	Timo Wollmershäuser, Ifo Chief Economist
00:44	Timo Wollmershäuser, Ifo Chief Economist
01:04 	Geraldine Dany-Knedlik, DIW German Institute for Economic Research
01:32 	Christoph Schröder, German Economic Institute, IW 
01:57 	Timo Wollmershäuser, Ifo Chief Economist 
02:15 	source: Video: Colourbox.de

Script: 

Germany’s economy is under pressure: tariffs, high production costs, and geopolitical uncertainties are reshaping its industrial landscape. And as more companies move production abroad, the question is: how worrying is this trend?
TC: 00:14- 00:29
+++Timo Wollmershäuser, Ifo Chief Economist +++
“Our exports are no longer performing, even though the rest of the world is actually doing quite well. And for the first time in many, many decades, Germany’s export sector is no longer benefiting from the global economic recovery.”

This is particularly clear in the key sectors of German industry — areas that earned solid profits for decades, driven by exports to the rest of the world.

TC 00:44- 1:04
+++Timo Wollmershäuser, Ifo Chief Economist +++
“Germany is losing market share in mechanical engineering and the automotive industry. These were our global flagship industries. This was what Germany stood for — what ‘Made in Germany’ stood for. And the figures speak for themselves: we're losing market share worldwide, especially to China.”
TC 01:04- 01:17
+++SOT Geraldine Dany-Knedlik, DIW German Institute for Economic Research +++
“‘Made in Germany’ is still ‘Made in Germany,’ but we do face competition. The quality gap with Asian products is no longer as big as it once was.”

According to a study by Deloitte and the Federation of German Industries, one in five companies have already shifted parts of their production abroad.

TC: 01:32- 01:47
+++Christoph Schröder, German Economic Institute, IW +++
“Unit labor costs here are very high in Germany. In fact they're among the most expensive anywhere. And although productivity is strong, it’s not strong enough to offset those costs compared with our competitors.”

On top of that, the country faces high energy prices and heavy bureaucracy. Together, these factors discourage new investment.

TC 01:57- 02:14
+++Timo Wollmershäuser, Ifo Chief Economist +++
“Building a production facility in Germany takes a lot of effort. There are many regulations to comply with, and getting approval can take a long time. That creates costs for companies that they wouldn’t face in many other locations.”

There’s a growing concern that the relocation of production could be just the beginning — that research, development, and even corporate headquarters might follow. 
A kind of shift that would further weaken Germany’s position.

Now it’s up to policymakers to ensure that research and development do stay in Germany — and strengthen the country’s competitiveness over the long term, before more firms consider relocating opeations abroad.