Bavaria's economy continues to struggle: economic index at its lowest point

Bavaria's economy continues to struggle: economic index at its lowest point

According to a report by www.pnp.de, the mood in Bavaria's economy remains at an all-time low, as the economic index from the Bavarian Chamber of Commerce and Industry (BIHK) shows. In Lower Bavaria, however, at least the downward trend seems to have stopped, as the Lower Bavaria Chamber of Industry and Commerce reports from its spring survey. Nevertheless, the outlook remains uncertain and the pre-crisis level from the time before Corona remains unmatched.

The IHK economic climate indicator has increased compared to the previous survey, but remains at a level well below average in the long-term comparison. 85 percent of the companies surveyed describe their business situation as good or satisfactory, while 15 percent rate it as bad. There are different considerations in the different industries, with service providers recording the most significant increase.

Despite this slight improvement, there is no optimism as companies continue to struggle with economic risks such as a shortage of skilled workers, high costs and stagnant demand. The economic policy framework is criticized by companies, particularly with regard to small-scale over-regulation and increasing costs for documentation requirements, environmental requirements, tax and customs regulations.

The uncertainties and challenges that companies in Lower Bavaria face could continue to lead to a subdued mood in the economy and affect the willingness to invest. This situation can lead to companies being hesitant to hire new employees and holding back investments. In addition, criticism of the economic policy framework could lead to increased discussions and initiatives on the part of political leaders to address companies' concerns and remove possible hurdles.