The German economy faces growing uncertainty as businesses express declining confidence in the current business landscape. According to recent surveys, more than a third of companies anticipate worsening business conditions. Key concerns include rising energy costs, bureaucratic hurdles, and an unstable regulatory environment. Since 2018, these challenges have contributed to a downward trend, with the construction and retail sectors particularly apprehensive.
The latest IHK survey, involving 1,000 companies and 158,000 employees, highlights these concerns. Businesses remain critical of the existing framework and are dissatisfied with the location's economic viability. Although a new government is in place, expectations for quick improvement are low, with potential developments likely postponed until the following year.
In regions like Leverkusen and Rhein-Berg, economic expectations remain bleak. Only a small fraction of companies foresee improvement, with high labor costs and insufficient domestic demand cited as significant risks. Despite some improvements in employment plans, investment volumes are expected to decline, reflecting broader economic stagnation.
Moreover, the construction and handicraft sectors in southern Saxony-Anhalt share similar sentiments. Only 25% of businesses there perceive their current situation positively, and many expect further deterioration. The burden of taxes, social contributions, and bureaucracy weighs heavily on these industries, underscoring a lack of stability and future orientation in government policies.
Amidst these challenges, economic and trade associations caution that Germany's prosperity is at risk. They emphasize the need for targeted measures to prevent economic stagnation and maintain the country's attractiveness to foreign talent. Despite the hurdles, a large majority of medium-sized enterprises remain committed to their domestic operations, with only a minority considering relocation.
