After trade between Germany and Austria recovered significantly from the corona pandemic last year and reached a peak in volume, the German Chamber of Commerce is preparing for difficult times: "We have to say goodbye to double-digit growth like in 2021 for this year "said the President of the German Chamber of Commerce in Austria (DHK), Hans Dieter Pötsch, on Wednesday in Vienna.

In the previous year, foreign trade was able to pick up speed significantly.

German deliveries to Austria increased by 19.7 percent to 71.7 billion euros.

Austria's exports to Germany increased by 17.9 percent to 47.7 billion euros.

Germany is the most important trading partner for Austria, conversely Austria ranks seventh for Germany.

Michael Seiser

Business correspondent for Austria and Hungary based in Vienna.

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There is a great deal of uncertainty as to how companies should deal with the rise in raw material and energy prices.

The current energy prices are also jeopardizing the long-term competitiveness of Germany and Austria as industrial locations,” emphasized Thomas Gindele, general manager of the DHK in Austria.

The decision of the German and Austrian governments not to agree to an energy embargo for gas is supported.

It would also be very difficult for the German economy if Austria also had problems with the energy supply, said Pötsch, Chairman of the Supervisory Board of Volkswagen AG and Chairman of the Executive Board of Porsche SE.

In addition to the ongoing supply chain problems and the energy price boom, business people also have to deal with climate change, demographic change and the corona crisis, which is not yet over.

Above all, productivity growth and innovation are solution strategies for the countries.

"What we need to boost productivity growth is investment," demanded Gabriel Felbermayr, head of the Austrian Institute for Economic Research (WIFO).

One of the most important tasks for Austria and Germany is therefore to maintain a positive investment climate so that investments are primarily made in digitization, automation and the energy transition.

In order to achieve this, even closer cooperation would be important for the two countries, which are already very closely linked economically, especially on energy policy, says the economist.

The emergency plans that politicians are currently working on should be coordinated much better.

In addition, the network infrastructure between Germany and Austria would have to be better coordinated and the internal market further expanded.

The ratification of free trade agreements - for example with Canada - should be pushed ahead much more.

However, Felbermayer warned against political intervention to “artificially depress” the high gas prices.

Because the currently high energy prices are "an enormous incentive to save" - ​​especially for the industry, in which it is currently assumed that the high gas prices will not return to the level before the crisis.

Political intervention would destroy this incentive again.

"The next ten years a kind of ice age with Russia"

Pötsch also sees great savings potential in industry, which has been underestimated in the past.

Dependence on gas is still "the Achilles' heel" of German and Austrian industry, but a reduction in this is already underway and will happen anyway due to the energy transition.

If all the political measures that have already been worked out were implemented quickly, the dependency could be largely resolved in two to three years, said the DHK President.

In view of the long-term trade relations with Russia, Wifo does not expect a recovery any time soon.

"In the medium and long-term forecast, we assume that we will have a kind of ice age with Russia for the next ten years," said Felbermayr.

Once Europe's dependence on Russian gas has been resolved, it will not return any time soon.

But Pötsch pointed out that there will be a time after the war.

"Russia is too big to think you can bypass the country".