German companies operating internationally are showing renewed confidence, with the Asia-Pacific region emerging as one of the more positive environments for business expansion, according to the AHK World Business Outlook (WBO) Fall 2025 published by the German Chamber of Commerce and Industry (DIHK).
Based on responses from more than 3,500 companies across around 90 countries, business sentiment among German firms abroad has improved following the disruption caused earlier in the year by US tariff policies. According to the survey, 44 percent of companies abroad expect business to improve in the coming twelve months, compared with only 15 percent domestically.
“International markets serve as a stabilizing anchor for many companies,” said Dr. Volker Treier, Head of Foreign Trade and member of the Executive Board at the DIHK. “They demonstrate their competitiveness there – even though the German location currently offers little support.”
Indonesia reflects regional optimism
Within the Asia-Pacific region, Indonesia also reflects improving business sentiment among German companies.
According to the survey results, German firms operating in Indonesia report a current business situation balance of +26 and business expectations of +52, placing the country among the more optimistic markets in the region.
Compared with the spring survey, sentiment has strengthened noticeably. Business expectations rose from a balance of 40 to 52, while investment plans moved from negative territory earlier in the year to a positive balance of 20.
Employment plans also remain positive, with a balance of 17 indicating moderate hiring intentions.
At the same time, companies continue to face challenges. Exchange rate volatility and economic policy uncertainty are among the most frequently cited risks for businesses operating in Indonesia, followed by concerns over demand, trade barriers, and supply chain disruptions.
Outside Asia-Pacific, the Middle East and North Africa (MENA) region stands out as another area with strong business confidence.
In this region, 52 percent of companies expect economic conditions to improve over the coming year, while only seven percent anticipate deterioration, resulting in one of the strongest outlooks globally.
Investment plans are similarly robust. Around half of companies operating in the region intend to increase their investments, well above the global average.
Global outlook stabilizes amid uncertainty
With regard to the global economy as a whole, the economic outlook remains mixed, but sentiment among German companies abroad has improved compared with the spring survey. Overall, 26 percent of respondents expect economic conditions in their host markets to improve over the next year, while 24 percent anticipate deterioration, bringing the balance of expectations back into positive territory.
In Europe, economic expectations remain subdued. In the eurozone, only 17 percent of companies expect the economy to improve, while 30 percent foresee a decline, reflecting concerns over competitiveness and ongoing trade tensions.
North America presents a similarly cautious picture. Although expectations have improved since the spring survey, companies continue to report uncertainty linked to US trade policy and shifting trade frameworks.
Against this uneven global backdrop, the Asia-Pacific region stands out as a comparatively positive market for German companies abroad.
Economic expectations among companies in Asia-Pacific improved significantly compared with the spring survey. Nearly one-third of respondents expect economic conditions to improve in their markets over the next twelve months, while only 15 percent expect deterioration. This results in a positive balance of +15 points, reversing the negative outlook recorded earlier in the year.
Business expectations are even stronger. Around half of companies operating in the region expect their business to improve in the coming year, while only nine percent anticipate a decline, producing a balance of +41 points.
The current business situation remains solid despite a slight decline from the spring survey. Thirty-nine percent of companies rate their situation as good, while 17 percent report poor conditions, leaving a balance of +22 points.
Investment sentiment also remains positive. Twenty-nine percent of companies in the region plan to increase investment over the next twelve months, while 12 percent intend to reduce spending.
Global risks remain
Despite the improving outlook, companies continue to face a challenging global business environment.
Economic policy uncertainty remains the most frequently cited risk, identified by 48 percent of companies worldwide. Weak demand follows closely at 47 percent, while exchange rate volatility is becoming an increasingly prominent concern.
Trade policy developments remain a key factor shaping business decisions. According to the survey, 44 percent of companies report negative effects from US trade policy on their operations abroad, although this share has declined compared with the spring survey.
Treier emphasized that the changing global trade environment requires a strategic response from Europe.
“The rules of global trade are being rewritten,” he said. “Those failing to secure market access through robust trade agreements or remaining structurally too costly will lose out.”
About the AHK World Business Outlook
The AHK World Business Outlook (WBO) is a regular survey conducted by the German Chamber of Commerce and Industry (DIHK) in cooperation with the German Chambers of Commerce Abroad (AHKs). The Fall 2025 survey gathered responses from more than 3,500 companies worldwide between 29 September and 17 October 2025.