Economy in Rhineland-Palatinate: Slight recovery, but problems remain!

Economy in Rhineland-Palatinate: Slight recovery, but problems remain!

In early summer 2025, the economy in Rhineland-Palatinate will show slight signs of recovery, as the current IHK economic survey shows. The economic climate index of the Chambers of Commerce and Industry has risen by 7 points and is now at 88 points. However, sentiment remains below the positive threshold of 100, which is a cause for concern. Despite this positive development, the current business situation remains weak. 52% of companies rate the situation as “satisfactory”, while 20% rate it as “good” and 28% as “bad”. The balance of assessments remains unchanged from the situation in winter at minus 8 percentage points. This is reported by the South Germans.

Managing director Arne Rössel from the Rhineland-Palatinate Chamber of Industry and Commerce emphasizes the need for growth-promoting impulses. The uncertainty about the economic policy framework is identified as the biggest problem. Domestic sales and labor costs are also weighing on sentiment. Only 22% of companies plan to increase investments, while a third are considering cuts. Two thirds of companies want to keep their workforce unchanged, and 23% expect reductions. Export expectations also remain negative. The services sector is stable with an index of 98 points, while industry shows slight improvements with an index of 88 points.

Significant need for action for companies

Business expectations for the next 12 months show a slight improvement, with the expectation balance rising from -26 to -16 percentage points. 54% of companies expect the business situation to remain the same, 15% hope for an improvement and 31% fear a deterioration. Nevertheless, the economic policy framework as well as domestic sales and labor costs remain the biggest concerns for entrepreneurs. This information is provided by Localo supplemented.

A strong tailwind is required for companies to overcome the existing challenges. Susanne Wingertszahn, chairwoman of the DGB Rhineland-Palatinate/Saarland, criticizes the fact that some companies blame young people for personnel problems and calls for a rethink. The propensity to invest remains cautious: 22% of companies plan to increase their investments, 46% want to keep them constant and 32% are considering reducing them.

In addition, 11% of companies predict an increase in headcount, while 23% expect a decrease. Export expectations remain strongly negative, with a balance of -21 percentage points. Only 11% of industrial companies expect an increase in exports, which represents a decline of 6 percentage points. Concerns about US punitive tariffs and national protectionist trends are having a significant impact on export expectations.

The IHK economic survey took place from March 24th to April 30th, 2025 and covered 1,102 companies of all sizes and sectors with a total of around 134,400 employees. Despite the noticeable spring recovery, the challenges to a stable recovery still remain.