Challenges Facing Medium-Sized Companies in Germany

In 2022, medium-sized companies in Germany faced significant challenges, recording a revenue loss of 4.6%, equating to a real decline of 10%. Their equity ratio slightly dropped to 30.6%, highlighting financial strain.

Despite this, employment increased, with 32.83 million individuals employed, a rise of 494,000 from the previous year. Investment willingness fell to 39%, reflecting growing uncertainty in the market.

Meanwhile, the return on sales remained stable at 7.0%. Many companies, particularly smaller firms, struggled with credit negotiations, indicating a tightening financial environment.

Economic experts attribute these difficulties primarily to cyclical factors, with many firms bracing for further revenue declines in the near future.