Economic situation - Association expects only slight economic growth in Bavaria
The Bavarian Business Association is expecting "at best" 0.3 percent economic growth in Bavaria in the new year. The general conditions remain difficult: high energy costs, increased interest rates, the weak global economy and "the enormous uncertainty" continue to weigh on companies, said association president Wolfram Hatz. After a year of stagnation, a weak recovery at best is to be expected this year.
There is no noticeable easing in sight for energy prices. This is putting pressure on production and investment in energy-intensive sectors. The industry has now worked off orders that have built up due to supply bottlenecks and material shortages. "However, new orders are only coming in hesitantly, which will be reflected in weak production," said Hatz. Little impetus is expected from exports. "As our largest trading partner, China is struggling with both economic and structural problems."
The great uncertainty is a major burden: "This concerns geopolitical developments with crises and conflicts on the one hand, and economic policy in Germany on the other." The interest rate level is dampening companies' willingness to invest and is having a particularly negative impact on the construction industry. Unemployment is likely to rise moderately. The expected fall in inflation, which should boost consumer purchasing power, offers some hope, said Hatz.
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Given the economic situation in Bavaria, businesses in the Free State of Bavaria, especially those in energy-intensive sectors, may face challenges due to high energy costs and the weak global economy. Munich-based companies are also affected by these unfavorable economic conditions. The Bavarian president of the Business Association, Wolfram Hatz, has warned of only slight economic growth in Bavaria in the new year.
Source: www.stern.de
