Analysis of the SME diagnosis 2022: Financial expert warns of bleak prospects

Analysis of the SME diagnosis 2022: Financial expert warns of bleak prospects

According to a report by www.come-on.de, the Sparkasse's SME analysis found that sales increased by 14 percent in 2022 and profits even increased by 17 percent. Nevertheless, according to CEO Kai Hagen, the prospects for the future are bleak. What is particularly worrying is that many customers are investing in foreign markets instead of staying in Germany.

The economic conditions for local companies are considered problematic because over-bureaucratization, a shortage of skilled workers and a lack of digitalization hinder economic activity. The mood barometer on the economic situation is signaling an emergency signal, and the economic climate has deteriorated significantly. In addition, the uncertain economic situation is also reflected in the numbers, as the price-adjusted gross domestic product stagnated in the second quarter of 2023.

The expert survey among savings bank commercial customer advisors showed that almost 66 percent of corporate customers assess their current business situation to be worse than in the previous year. Only a good 4 percent of those surveyed dare to have a positive outlook for the next twelve months. However, the savings bank emphasizes that it is financially strong and is prepared for stormy times.

Given these forecasts and analyses, uncertainty in the market will increase and the financial industry will have to prepare to support SMEs in this difficult phase. Customers' willingness to invest may shift further abroad, and German companies could permanently lose competitiveness. Measures to strengthen competitiveness and promote digitalization could be supported by the financial sector in order to cushion negative developments and support medium-sized businesses.