Current Edition
The Business Confidence Survey (BCS) 2024/2025 was conducted between November 13, 2024, and December 20, 2024. A response rate of 37% was achieved out of the 260 contacted eligible respondents.
Summary
1. German Companies Reported Enhanced Results in 2024
The majority of German companies were able to recover from the challenges of 2023, ending 2024 on a positive note. Although business satisfaction reached a five-year low at approximately 57 percent, more than 60 percent of companies achieved their business targets—nearly a 10 percentage point increase compared to 2023. This positive trend is also evident in turnover and profitability. A larger number of German companies surpassed the NT$ 1 billion threshold in 2024, and over one-third saw an increase in EBIT margins. Meanwhile, the proportion of companies reporting decreased EBIT margins dropped significantly, from nearly 50 percent to around 25 percent.
2. Energy Transition Causing Concerns for Future Development
Taiwan’s economic growth, global conditions, and cross-strait relations remain the most frequently cited potential challenges for future business operations. Domestic issues like import restrictions, tender processes, and the ongoing energy transition also raise concerns. Among companies participating in tenders, half face repetitive documentation, while more than one-third struggle with unclear evaluation criteria. Nearly 60 percent of German companies are concerned about future energy supply stability. To address this, diversifying energy sources, building robust backup systems, and increasing renewable energy investments are seen as viable solutions.
3. Fewer German Companies Willing to Invest in the Upcoming Two Years
After last year’s record high of nearly 50 percent, the willingness to invest in Taiwan has returned to a more typical level of around 40 percent. Staff development and business expansion remain the top priorities for German investments. However, a growing number of companies are refraining from investment, with unwillingness now surpassing willingness for the first time since 2017. The main reasons behind this shift include low market expectations, concerns about the global economy, and political instability. Notably, uncertainty over the future development of cross-strait relations has become a less decisive factor than in previous years.
4. Optimism for Positive Future Development Remains Strong
Taiwan’s strong GDP growth in 2024 and its thriving industry sectors have fostered optimism among German companies regarding Taiwan’s economic outlook for 2025. Over half of the respondents expect the economy to continue improving, with a similar trend projected for the next three years. When it comes to their own growth, German companies display varied expectations. They are slightly more optimistic about achieving their business targets in 2025, and more than half anticipate an increase in turnover. However, profit forecasts show a slight decline. Over 60 percent expect their local entity to expand next year, and one-third predict a rise in headcount.
Report
Your go-to source for insights into the state of German companies in Taiwan.