Trade Minister Expresses Unwavering Confidence: 'I'm Absolutely Unbothered'
Anton Böerner, the new president of the Federal Association of Wholesale, Foreign Trade and Services (BGA), expressed confidence in the recovery of the German economy during a recent interview with the Funke media group newspapers. Böerner, an economist, emphasised that the situation in the German economy during the coronavirus crisis varies greatly, with some sectors suffering while others are thriving.
According to Böerner, German companies will be back to their pre-coronavirus state by mid-next year. However, he acknowledged that the BGA sectors are currently under pressure from trade tariffs triggered or exacerbated during the pandemic. The technical supply trade and the event sector, including the trade fair industry and its suppliers like catering, are suffering extremely.
Despite these challenges, Böerner does not express concern about significant job losses due to the extension of short-time work until the end of 2021. He believes that the instruments provided by the state aid are being used correctly and that state aid loans will prevent a major wave of insolvencies.
Böerner praised the crisis policy of the federal government, stating that the aid provided to the economy has been good. He encourages a positive psychological approach to aid in exiting the crisis, stating that "there's something for everyone."
Mail-order companies are experiencing a boom, and without state aid, Böerner believes there would be a catastrophe. On the other hand, other sectors represented by the BGA, such as construction-related trade, are doing well and experiencing increases in turnover in some cases.
Looking ahead, the future outlook remains cautious. Although some trade escalation conflicts have been temporarily averted, the BGA and related industry associations stress the need for a European strategy that supports competitiveness and economic resilience. The ongoing tariffs and trade hurdles are expected to continue affecting the wholesale and trade sectors by increasing operating costs and posing risks to long-term economic stability.
Anton Böerner expects a COVID-19 vaccine to be available soon and for the situation to normalize after the first quarter of 2021. He is confident that normal life can return by Easter, with any remaining challenges hopefully being resolved by summer. Böerner stated that the extension of short-time work until the end of 2021 means there won't be significant job losses - companies can keep their employees.
In summary, the BGA sectors are currently under pressure from trade tariffs triggered or exacerbated during the coronavirus crisis, and the outlook depends on political willingness to resolve these challenges and create a more competitive, resilient economy. However, Böerner remains optimistic about the recovery of the German economy and the return to normal life by mid-2022.
Other sectors represented by the BGA, such as construction-related trade, are seeing growth with increases in turnover, while finance for mail-order companies has been a significant boost during the crisis. Despite the ongoing pressure from trade tariffs, Böerner's business outlook remains optimistic, with confidence in the recovery of the German economy by mid-2022.
