Saxony's entrepreneurs are going through the crisis: A financial expert shows the causes.

Saxony's entrepreneurs are going through the crisis: A financial expert shows the causes.

According to a report by www.saechsische.de, a survey of Saxon manufacturers and retailers came to the conclusion that there is no upturn in sight. Both Max Jankowsky, President of the Chemnitz Chamber of Commerce and Industry, and Managing Director of the Lößnitz Foundry, confirm this. Saxony's economy recently appeared to be solid: in 2020, mechanical engineering companies and car manufacturers recorded sales growth of eight and nineteen percent, respectively, compared to the previous year. But according to Jankowsky, this has changed dramatically around 2021. He mentions that energy prices in particular have led to a threatening situation.
Another bad sign is the business outlook of the Saxon IHK members surveyed, which is pointing downwards in almost all sectors. Various economic officials, including Gert Ziener, Managing Director of the IHK in Leipzig, Max Jankowsky, President of the IHK Chemnitz and Lukas Rohleder, General Manager of the IHK Dresden, do not see an upswing.

One possible impact could be a slowdown in the region's economy, which could lead to a decline in income and investment in the region. Companies served by the Saxon Chambers of Commerce could see a decline in sales, which in turn affects their growth plans. This could lead to the emergence of a “perceived” economic downturn, affecting confidence in the regional economy. From a fiscal policy perspective, lower sales and income can also reduce government revenues, which can lead to further economic problems.