Bavarian economy in crisis: BIHK survey shows worrying business situation and high risk factors.

Bavarian economy in crisis: BIHK survey shows worrying business situation and high risk factors.

According to a report by t-online.de, the Bavarian economy is in crisis and the economic index of the Bavarian Chamber of Industry and Commerce (BIHK) is stagnating at 101 points, well below the long-term average of 112 points. This means that almost all industries are dissatisfied with their current business situation.

Economic policy is a concern for 64 percent of companies surveyed, followed by other risks such as domestic demand, labor shortages, energy and raw material prices and labor costs.

3,800 Bavarian companies took part in the BIHK survey and reported that almost all sectors are more dissatisfied with their current business situation than in the fall. Only service providers are reporting better business, while industry and the construction sector, traditional pillars of the Free State economy, are stuttering. The pessimistic mood is also underlined by companies' plans to reduce investments and cut jobs.

Bureaucracy is seen as the biggest problem for the economy, as more and more regulations slow down innovation and growth. Reliable energy supply with competitive prices and the demand for relief and flexibility in working hours were also identified as important issues.

These developments could have serious effects on the Bavarian economic market. Companies could cut investments and cut jobs, which could lead to a worsening of the economic situation. The demands for less bureaucracy and a reliable energy supply could lead to political changes that in turn influence economic development.

The current circumstances therefore require in-depth analysis and possibly strategic adjustments on the part of companies in order to prepare for the challenging situation.