Sectors and Resources
The Sector Research team analyses cyclical and structural developments. On the basis of its findings it draws up business and policy recommendations for the major sectors. These include the important branches of industry as well as wholesale/retail, services, energy, transportation and environmental policy.
Germany
German industry: Only marginal increase in output at start of 2015
Despite only marginally higher output in Germany's manufacturing sector in Q1 2015 we are sticking with our full-year production forecast (+1.5% in real terms). The current softness of the euro benefits Germany's export sectors. Nonetheless, companies appear much more upbeat in their assessment of the current situation than in their expectations for the coming months. This is likely due, for example, to continuing geopolitical risks and poorer economic policy conditions in Germany. So it is clear that in the business world not everything is sweetness and light. [more]
Germany
How is the weak euro affecting different sectors? Who is benefiting and who is losing out?
At sectoral level, the positive effects of the euro's current weakness are clearly outweighing its drawbacks. Capital equipment manufacturers are benefiting the most from the increasing price competitiveness offered by Germany as a business location. In 2014, the automotive industry generated 45.5% of its total revenue from non-EMU countries, while the proportion for the mechanical engineering sector was almost 43%. Parts of the electrical engineering, chemicals and pharmaceutical industries are also especially benefiting from the recent devaluation in the euro. [more]
Biotechnology
Biotechnology: Funding gap jeopardising competitiveness
Biotechnology is one of the key technologies for securing Germany's position as a manufacturing location. While biotechnology research in Germany is being conducted at the leading edge and grants make it easier to set up a biotech firm, young companies often encounter funding bottlenecks when the start-up financing phase comes to an end. One indicator of how grave the funding situation is in Germany is that the average amount of venture capital available to a company is around four times as high in the US as it is in Germany. This funding gap could jeopardise Germany's high-tech strategy objective of beefing up key technologies in the domestic market. [more]
Healthcare
Weak investment in the healthcare system
Since around 2009, the German healthcare system has been characterised by weak investment. One reason is that public subsidies for the sector have been reduced. This development harbours risks, for only a regular renewal of medical appliances and equipment is likely to ensure the high quality of treatment in Germany in the long term. By contrast, lower investments in the building stock would primarily mean a reduction in the current hospital overcapacities. [more]
Commodity prices
Oil producing countries
German exports to oil-producing countries to decline in 2015
At the APEC Summit the US and China reached an accord on long-term targets to combat climate change. The US plans to cut its CO2emissions by 2025 by 26-28% compared with 2005 levels. In China CO2emissions are to peak by 2030 at the latest. Although many reservations will probably be expressed that this is too little to contain the negative consequences of climate change to a manageable degree, given the realities in international climate policy such a compromise is the bird in the hand that may be preferable to the two in the bush. [more]
Spotlight on Germany
 
 
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