Economic crisis in Central Germany: No improvement in sight!

Economic crisis in Central Germany: No improvement in sight!

Halle (Saale), Deutschland - The economic situation in Central Germany remains tense. On June 16, 2025, the commercial chambers from Leipzig and Halle (Saale) published their current economic report. The results are sobering: the situation of the Central German economy has not improved compared to the previous year. The companies continue to fight with a persistent recession phase that is reflected in a cloudy business situation. According to the report from the Chamber of Crafts and the Chamber of Industry and Commerce, the economic climate index for the region has increased to 32 points- an increase by one point, but far away from the highest level of 89 points from spring 2018. These weak figures show that the hoped-for recreation in the industry has so far failed to materialize.

In addition to the serious challenges in Central Germany, the doldrums are also reflected at the national level. The German economy has a minus in the gross domestic product (GDP) and heads for a technical recession after she has experienced two minus quartals in a row, such as Tagesschau . While other industrialized nations are growing, Germany is faced with shrinking business forecasts. The International Monetary Fund (IMF) expects a decline in GDP by 0.3 percent for 2023, which increases the misery.

stressful factors for companies

In many companies, sales and earnings reductions are caused by rising labor costs and high energy prices. This situation means that the personnel planning of the companies becomes weaker and the number of employment continues to stagnate. In addition, there is a skeptical attitude in craft compared to personnel development, which is mainly due to demographic changes.

The sobering situation is reinforced by hesitant willingness to invest in the company. The investment balance remains unchanged because many companies are reluctant to invest in Germany. In order to strengthen the domestic economy, the Central German economic chambers are calling for urgent measures, including reducing energy costs - especially the electricity tax - the relief of small and medium -sized companies and reducing bureaucracy. These demands aim to improve the framework conditions and relieve the companies.

overall economic prospects

The economic prospects for Germany are also anything but rosy at the moment. Although the Federal Government expects a slight GDP plus of 0.4 percent, economics only indicate a mini-growth of 0.2 percent. High inflation and at the same time increasing unemployment figures - in July the number of unemployed rose to 2.617 million - dampen the purchasing power of consumers and the demand for workers is cautious. Forecasts the problems of the German economy, which are particularly serious due to high energy costs and taxes as well as the ongoing shortage of skilled workers.