Europe’s technology industries see strong growth in the rear-view mirror and a bumpy road ahead
10 May 2022
After a strong start to 2022, Europe’s technology industries are forecasting sharply lower growth for the full year, hit hard by the impacts of the war in Ukraine. The latest biannual report from Orgalim forecasts 3.8% growth in nominal terms for the European mechanical engineering, electrical engineering and electronics, ICT and metal technology industries, despite healthy order books and double-digit growth last year.
"After recovering robustly in 2021, Europe’s technology industries find themselves strongly exposed to the indirect impacts of the war in Ukraine. We expect further growth in 2022, but the downside risks are considerable," said Malte Lohan, Orgalim’s Director General.
European technology industries’ production grew a healthy 12.8% in 2021, emerging from the pandemic. But supply bottlenecks – for metal products like sheet steel and electronic components, among other things – have worsened since the start of the war and are slowing production, while a surge in the price of industrial metals, energy and other raw materials, is squeezing margins, Orgalim reports.
"Our technology industries are very susceptible to the indirect impacts of the war in Ukraine – more so than to the direct consequences relating to export and import restrictions," explained Martin Baminger, chair of the Orgalim Economics & Statistics working group.
Despite the uncertain situation, Europe’s technology industries are positive about employment prospects, expecting 1.4% growth in jobs in 2022, more than making up for a slight drop last year.
Read the full report on the Orgalim website here.
After recovering robustly in 2021, Europe’s technology industries find themselves strongly exposed to the indirect impacts of the war in Ukraine. We expect further growth in 2022, but the downside risks are considerable.