Economic situation in the southwest: markets positive, but well away from previous best values

Economic situation in the southwest: markets positive, but well away from previous best values

According to a report by www.stuttgarter-zeitung.de,

The economy in southwest Germany remains weak, as a new survey by the Stuttgart Region Chamber of Commerce and Industry shows. The indicator for the current business situation rose slightly to 18 points compared to the autumn survey, but overall the business situation is sluggish. Business expectations for this year are negative at minus 11.2 points, but slightly better than in autumn.

The list of risks that companies see for their economic development remains largely unchanged. The weakening domestic demand, the lack of skilled workers and the high personnel and energy costs are particularly causing headaches for companies. What is striking, however, is that significantly more companies see economic policy as a risk - almost 40 percent in total.

According to the President of the IHK Region Stuttgart, Claus Paal, the view of the next few months remains significantly cloudy and frustration is growing in companies. This is not only related to the economic situation, but also to politics. Companies need predictability and reliability, demanded Paal, and criticized the uncertainty caused by announced measures that are publicly debated and then changed or withdrawn again in a short space of time. Among other things, he called for an affordable energy supply, less bureaucracy, measures to secure skilled workers and the modernization of the country's infrastructure.

This development has an impact on the market and the financial sector, as the uncertain economic situation influences companies' willingness to invest. Negative business expectations can lead to a reduction in investments, which in turn can affect the overall market and financial stability. The demands for an affordable energy supply and measures to secure skilled workers also show the need for government measures to strengthen the economy.

Overall, the survey points to ongoing economic challenges that could have serious implications for the financial industry and the market. Measures are expected to support the economy and reduce uncertainties.