Economy in Central Germany: standstill despite slight improvement!

Economy in Central Germany: standstill despite slight improvement!

The economic situation in Central Germany has improved slightly compared to the previous year, but there is no real turnaround. In a current economic survey, presented in Leipzig by the Chamber of Commerce and Industry and the Chamber of Crafts, the economic climate index is 32.4 points. This is only a marginal increase from the previous year's figure of 31 points, but remains a long way from the high of 89 points reached in spring 2018. President Thomas Keindorf of the Halle Chamber of Crafts said that despite this minimal improvement, there was no economic upswing in sight, as reported South Germans.

The survey, which represents more than 147,000 companies in the region between the Elbe and Saale, shows a worrying development: many companies report falling sales and earnings. Kristian Kirpal, President of the Leipzig Chamber of Industry and Commerce, warned of increasing cost pressure, which would put additional pressure on companies. High-priced energy costs and rising wages are depressing the mood in the central German economy.

Stagnation and investment climate

The current stagnant state of the economy is described as unfavorable. The investment climate in particular is considered poor: high location and labor costs as well as bureaucratic hurdles significantly limit the willingness to invest. Chamber officials are therefore calling for a change in economic policy. They are committed to several immediate measures, such as a sustainable reduction in energy costs and the reduction of bureaucracy in order to improve the economic framework Hall spectrum.

The chambers are also particularly concerned about the next generation of skilled workers. The number of young people in dual training is decreasing, which could endanger the region's competitiveness in the long term. In this context, officials are calling for measures to strengthen vocational training and an adjustment of the standard basic security rates to wage developments in order to get more people into gainful employment.

Economic policy demands

The comprehensive demands of the Central German Chambers of Commerce include:

• Senkung der Energiekosten, etwa durch Absenkung der Stromsteuer und gedeckelte Netzentgelte.
• Technologieoffene und grundlastorientierte Neuausrichtung der Energiewende.
• Senkung der Körperschaftssteuer und bessere steuerliche Behandlung von Personengesellschaften.
• Bürokratieabbau und das Prinzip „One in, two out“ in der Gesetzgebung.
• Stärkung der Erwerbsarbeit.
• Staatliche Ausgaben sollten nur im investiven Kontext erfolgen, um künftige Generationen vor übermäßiger Belastung zu schützen.

The chambers are combative, but the situation remains tense. Without fundamental economic policy changes, the stagnating development could become further entrenched.