Audi 2014 Annual Report Download - page 155

ECONOMIC REPORT
BUSINESS AND UNDERLYING SITUATION
>> 155
BUSINESS AND
UNDERLYING SITUATION
/ GLOBAL ECONOMIC SITUATION
The global economy expanded by 2.7 (2.6) percent in the 2014
fiscal year. For all the lingering structural challenges, the
overall economic situation improved in many industrial nations.
This contrasted with economic developments in a number of
emerging economies, which were hampered by exchange rate
fluctuations and structural deficits. Though many central
banks adhered to expansionary monetary policies, average
inflation for the year remained at a moderate level overall.
In Western Europe, the economy managed to break out of
stagnation with growth reaching 1.2 (0.0) percent. Most
northern countries of Western Europe achieved steady growth
in gross domestic product, while the countries further south
drew closer to moving out of recession. As a result, the unem-
ployment rate declined to 10.7 (11.2) percent, but remained
above the long-term average. Unemployment rates were much
higher in Greece and Spain.
The German economy enjoyed a moderate upturn in 2014 and
achieved growth of 1.5 (0.2) percent, mainly thanks to the
continuing favorable trend in the labor market and positive
consumer sentiment.
While Central European countries enjoyed a positive economic
development in the past year, the economic situation in Eastern
Europe deteriorated in the wake of tension between Russia and
Ukraine. Economic growth in Russia continued to decline, with
gross domestic product growing by only 0.4 (1.3) percent.
After weather conditions contributed to a subdued start to the
year, economic momentum in the United States increased as the
year progressed. Fueled by falling unemployment rates and
consistently positive consumer confidence, the U.S. economy
expanded by 2.4 (2.2) percent in 2014.
The South America region achieved no better than moderate
economic growth. Gross domestic product in Brazil, for example,
remained flat due to structural problems, falling investment
and weak consumer spending, contrasting with 2.5 percent
growth in the previous year.
The highest rate of growth in 2014 was again achieved in the
Asia-Pacific region. Economic growth in China slowed somewhat
but remained robust at 7.4 (7.7) percent. Gross domestic prod-
uct in Japan was overshadowed by tax increases and thus grew
only marginally by 0.2 (1.6) percent.
/ INTERNATIONAL CAR MARKET
Worldwide demand for cars grew at a rate of 4.5 percent in
2014 to 73.4 (70.3) million passenger cars – a new all-time
record. More vehicles were sold primarily in the Asia-Pacific,
North America, Western Europe and Central Europe regions,
while demand in Eastern Europe and South America was down.
In Western Europe, overall market demand continued to stabi-
lize in the past fiscal year. 12.1 (11.5) million vehicles were
newly registered there, an increase of 4.9 percent. Vehicle
sales were nevertheless still significantly below the pre-crisis
level of 2007, when 14.9 million passenger cars were sold.
ECONOMIC REPORT
In a challenging market environment, the Audi Group was again able to
maintain its course of growth in 2014, increasing deliveries of the core
brand Audi by 10.5 percent to the new record total of 1,741,129 cars. This
led to new sales records being established in over 50 individual markets.