What is at stake for Germany’s economy if the world breaks up into blocs

Client

own publication

Year

2022


In the event of a possible reorganisation of world trade as a result of the Russian war of aggression, Germany is threatened with the loss of important markets.
Dr Michael Böhmer, Chief Economist

The German economy is strongly intertwined with the global economy. But instead of global interdependencies, regional trade blocks could determine world trade in the future. Our brief analysis shows what a deglobalised world economy means for the German economy. 

Regionalisation instead of globalisation

For some time now, the end of globalisation as we have known it has been looming. In the wake of the Russian war of aggression, there is a growing risk that the world economy will disintegrate into different regional trading blocs – with strong economic exchange within, but significantly fewer intensive relations between the regions.

For Germany, which is strongly globally interconnected, such an end to globalisation would have far-reaching consequences. A new brief analysis shows how dependent Germany is on individual regions of the world in various economic categories. In order to establish dependencies, a team led by Prognos Chief Economist Michael Böhmer divided the world’s regions into blocs based on geographical and geopolitical characteristics, as they could emerge in view of the Russian war of aggression on Ukraine.

The results provide information on the economic consequences for Germany of the formation of a bloc and an end to the global economic interdependencies that have developed over decades. Among other things, foreign trade, the associated employment in Germany, the dependence on raw materials, but also the international research cooperations were examined.

Read brief analysis (PDF)

The results of the brief analysis were first published in Handelsblatt on 6.5.2022.

Update: A short conclusion was added to the analysis for download (PDF) on 9 May.

To the Handelsblatt report (€, in German)

Do you have questions?

Your contact at Prognos

Dr Michael Böhmer

Managing Partner | Chief Economist

View profile

More studies & projects on this topic

Impact Assessment of the European Innovation Act

2026
| Project

Europe has a strong research capabilities, but too little market success. The European Innovation Act aims to change this, remove structural barriers and thereby significantly strengthen innovation in the EU. Prognos and its partners were assisting with its development.

Europe’s clean-tech industry: Value creation, employment and demand for skilled workers

2026
| Project

Our study for the European Environment Agency shows that the clean-tech industry is growing rapidly – yet a skilled workforce is becoming a crucial factor in achieving the EU’s net-zero targets.

The importance of the EU for Germany

2026
| Project

The EU is central to Germany’s economy. Our study for vbw highlights the extent to which growth, employment and value creation in Germany depend on the European Single Market.

Implementation of the European Cluster Collaboration Platform (ECCP)

2026
| Project

The aim of the European Cluster Collaboration Platform (ECCP) is to strengthen the European economy through cooperation. Together with our partners, we were developing the ECCP into a single point of contact for cluster organisations in Europe.

Study Series: The Economics of the Trade Fair Industry

ongoing
| Project

How do trade fairs affect the regional and national economy? Our series of studies, commissioned by AUMA and individual trade fair venues, provides the answers.

Industrial sovereignty and regional inequalities in the EU

ongoing
| Project

How do investments in industrial policy influence regional development in Europe? Prognos analyses how different strategic approaches to industrial policy shape regional outcomes.

Intergenerational fairness for the future of Europe

ongoing
| Project

How can opportunities, resources, and risks be distributed fairly between generations? In the LIFe project, we are investigating for the European Commission how key areas of life develop over the life course and across generations.

Federal Report on Research and Innovation 2026

2026
| Project

In the 2026 Federal Report on Research and Innovation (BuFI), the federal government outlines its current research and innovation policy goals and measures. Prognos once again assisted the Federal Ministry of Research, Technology, and Space in preparing the report.

Strengthening scientific cooperation within the Weimar Triangle

ongoing
| Project

Germany, France and Poland are strengthening research and innovation through the Weimar Triangle. Prognos is identifying opportunities and developing forms of trilateral cooperation on behalf of the Federal Ministry of Research, Technology and Space.

Austria and Vietnam: Trade opportunities in times of geopolitical tension

2026
| Expertise

Geopolitical tensions are hampering global trade. What opportunities can so-called connector countries present for Austria? Eva Willer explores this question in an article for the magazine Wirtschaftspolitische Blätter.

About us

We combine economic research and strategy consulting for sustainable decisions in politics, business and society. Our robust data, precise analyses and scientifically based findings enable fact-based progress – financially independent, politically neutral. 

Learn more