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Economic Struggles in Oberberg Region
2024-10-10 23:55:09
Business
Economy
Markets

Economic Struggles in Oberberg Region

The recent IHK business survey highlights a troubling economic scenario in the Oberberg region. Companies face declining orders, reduced investments, and significant job cuts.

Approximately 41% of businesses report poor conditions, while 56% experience a drop in orders. Only 14% plan to expand their workforce.

Financing issues affect one in five companies, exacerbated by skilled labor shortages, high costs, and bureaucratic hurdles. The employment indicator shows a negative trend, with recession fears looming.

Many businesses are cutting temporary staff to cope with the downturn. There is a prevalent call for stable economic policies, with businesses urging against increased taxes on commercial properties.

The economic climate reflects structural challenges, demanding immediate attention to foster recovery and growth.

Related news on that topic:

Germany's Economic Struggle Amidst Internal Challenges

Germany is facing a significant economic downturn, characterized by declining consumer confidence, reduced investments, and increased savings. This scenario is further exacerbated by a rising gold price, a decrease in shareholder participation, and an upsurge in major insolvencies. The prevailing pessimistic outlook is turning the country's economic emblem into a symbol of impending doom. Efforts by the government to counteract these issues with fiscal measures seem destined for failure. The traffic light coalition, alongside economic institutes and credit insurers, identifies this pervasive pessimism as a central issue. Economic Minister Robert Habeck has lowered growth forecasts, indicating stagnation despite hopes for a growth initiative. The situation mirrors the challenges faced during Chancellor Schröder's tenure, with low growth potentially leading to political shifts. Compounding these issues are fears of rising living costs, migration, and unaffordable housing, especially in urban and eastern regions. Volkswagen, a key player in Germany's industrial landscape, struggles with profitability due to high labor costs and competition, reflecting wider industrial decline. Calls for suspending the debt brake have emerged, arguing that its rigid application hampers economic recovery. Meanwhile, structural challenges like demographic shifts and competitive weaknesses further cloud the outlook. The government projects a recession in 2024, with a slight recovery anticipated in 2025. Critics argue that more support and structural reforms are needed to navigate these turbulent times effectively. Overall, Germany's economic predicament is a complex interplay of internal challenges and external pressures, necessitating decisive action and strategic reforms to avert prolonged stagnation.

Germany's Industrial Decline Amid Economic Challenges

Germany's industrial sector is facing significant challenges, marked by declining sales in the automotive industry and a shortage of orders in manufacturing. Key sectors such as mechanical engineering and the chemical industry are heavily impacted. The energy price shock, aggressive policies by China and the USA, and reduced e-mobility subsidies from the federal government have destabilized conditions. Economics Minister Habeck acknowledges a loss of potential, expecting economic contraction but remains hopeful for growth through governmental initiatives. The decline in industrial orders, particularly in critical sectors like automotive and chemical, raises concerns about a recession-like state. Despite global growth forecasts exceeding 3% in 2024, Germany's economy shows no signs of swift recovery. Commerzbank's chief economist predicts minimal growth due to unresolved structural issues and China's economic slowdown. Habeck sees autonomous driving as a significant opportunity for the auto industry, which struggles with sales, high costs, and weak international performance. The industry faces a transformative phase towards eco-friendly technologies and increased digitalization. As Germany navigates these economic challenges, improving infrastructure, reducing energy costs, and tackling bureaucracy are crucial steps forward.

Read 12 more recent news on this topic

The press radar on this topic:

gmx
10. Oktober 2024 um 15:07

Companies in Cologne and the surrounding area: The business situation has not been as bad since the Corona shock

Economy
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The economic climate indicator is at a low point, only worse during the Corona shock in 2020; The business situation and financial situation of many companies in the Cologne Chamber of Commerce and Industry district have deteriorated significantly; Only one in five companies reports a good business situation, 47% have a problematic financial situation; Extremely pessimistic expectations, only 25% plan higher investments, over 25% want to reduce jobs; Weak domestic demand is the biggest problem,..
rp_online
10. Oktober 2024 um 15:03

Dramatic Business Survey of the Chamber of Commerce: Leverkusen's Economy Sinks Deeper into Crisis

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The latest business survey by the Chamber of Commerce offers little hope for an economic recovery. Only 20 percent of companies report a good business situation.
rp_online
10. Oktober 2024 um 16:09

Economic Survey in Wermelskirchen and the Region: Economy Sees Situation Significantly Deteriorated

Economy
Politics
Finance
Environment
The economic survey shows a significant deterioration in the economic situation in Wermelskirchen and the region. The economic indicator fell to 88.3 points, export expectations and the financial situation of companies have deteriorated. The main risks are domestic demand, labor costs and economic conditions. Demand for reliable economic policy and relief for companies.
gmx
10. Oktober 2024 um 16:15

Economic Situation in Leverkusen and Surroundings 'Dramatically Deteriorated'

Economy
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The economic climate indicator has fallen by 7 points, and the overall economic situation is negative for the first time since the pandemic. 21% of companies report a poor business situation, and 89% expect deterioration. Bankruptcy numbers have risen by 20%, and the unemployment rate stands at 7.5%.
gmx
10. Oktober 2024 um 16:14

Konjunkturumfrage der IHK: Schlechte Geschäfte und düstere Prognose für Oberberg

Wirtschaft
Finanzen
Oberbergische Unternehmen leiden unter schlechter Auftragslage, Investitionsrückgang und Personalabbau. Laut IHK-Umfrage sehen 41% "schlechte Geschäfte", 56% Auftragsrückgang und nur 14% planen Personalaufbau. Finanzierungsprobleme treffen jedes fünfte Unternehmen. Ursachen sind Fachkräftemangel, hohe Energie-/Arbeitskosten, Bürokratie. Der Beschäftigungsindikator steht auf Rot, eine Rezession droht, auch das Handwerk ist betroffen.
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