Financial expert analyzes the economic situation in northern Hesse: critical developments and hope for improvement

Financial expert analyzes the economic situation in northern Hesse: critical developments and hope for improvement

According to a report by www.hna.de, a group of decision-makers from the North Hesse economy discussed the economic situation in Germany and North Hesse at Schönfeld Castle in Kassel. Critical developments and optimism were highlighted. The federal government is assuming economic growth of 1.3 percent, while the German Economic Institute is forecasting a decline of 0.5 percent. Ingo Buchholz, savings bank board member, reported a 30 percent decline in loan commitments for private housing construction in 2023. Chamber of Crafts President Frank Dittmar pointed out that new housing construction in the region is only profitable with rents of 17 euros per square meter, which significantly inhibits new construction. Liquidity and payment practices are also decreasing, indicating a possible increase in bankruptcies.

These developments are expected to impact the regional market and financial industry. The decline in housing loan commitments may result in a depressed real estate market and impact the operations of financial institutions. An increase in bankruptcies and a low propensity for expansion investments in companies may also influence lending and financial stability in the region. However, the mentioned hopes for less bureaucracy, targeted immigration and a better work-life balance show positive approaches to increasing growth in northern Hesse.

Overall, the developments discussed point to a mixed economic situation in northern Hesse, which is characterized by various challenges and opportunities. It remains to be seen how the above-mentioned influencing factors will affect the market and the financial industry in the coming months.