Economy in MV: Slight recovery despite gloomy outlook!

Economy in MV: Slight recovery despite gloomy outlook!

Something is happening in Mecklenburg-Western Pomerania, even if optimism is still falling by the wayside. A current one Opinion poll of the Chambers of Commerce and Industry reveals that companies are experiencing a weak recovery in their business. Around 35 percent of the companies surveyed rate their situation as good. This is a slight increase compared to 32 percent in early summer. However, skepticism remains prevalent, with only 10 percent optimistic about the future, while 29 percent report a more pessimistic assessment. Small businesses in particular are at great risk.

The reluctance to invest is also noticeable. Only 8 percent of companies are planning to hire new employees, while 24 percent are expecting staff cuts. 22 percent want to increase their spending, compared to 38 percent who want to reduce their spending. Despite the federal special depreciation to stimulate investment, there are hardly any significant results. Companies are particularly concerned about rising costs, especially due to the minimum wage of 13.90 euros that will apply from January 1, 2026.

Minimum working conditions in Mecklenburg-Western Pomerania

Another important point concerns the recently introduced minimum working conditions regulation ( MinArbV M-V ), which came into force on May 30, 2025. The aim of the regulation is to ensure fair and transparent conditions when awarding public contracts. This regulation sets out mandatory minimum working conditions that apply to companies carrying out public contracts and includes clear requirements for compliance with collective agreements and minimum wage rates of 13.50 euros per hour. This affects over a million people in northern Germany, and the pressure on companies is growing.

In addition, bureaucracy is cited as a major concern for companies. Many are faced with project delays. The uncertainties surrounding energy prices and rising health insurance contributions are additional burdens. The shortage of skilled workers also remains an issue, but has lost some of its urgency. At least the export prospects show a slight improvement following successful customs negotiations.

Economic growth and consumption trends

Last year was quite impressive, as Mecklenburg-Western Pomerania recorded economic growth of 3.1 percent in the first half of 2024, making it the leader among the federal states. This is proven by the figures State Statistical Office. The rapid increase is mainly due to the robust value creation in the manufacturing sector and the liquid gas terminal in Lubmin. In contrast, Hamburg followed with growth of 2.2 percent and Schleswig-Holstein with 1.1 percent. Other federal states such as Baden-Württemberg and Thuringia are suffering from economic decline.

But here too the wood is not completely dry. The entire German economy seems to be heading towards stagnation. Consumer spending remains cautious despite rising real wages. It remains to be seen what stimulus the new regulations and economic growth will bring to companies in Mecklenburg-Western Pomerania.