Economic situation - Economy: researchers anticipate slightly stronger growth
The economy in North Rhine-Westphalia is expected to recover more strongly this year than previously assumed by business researchers, according to a report by the RWI - Leibniz Institute for Economic Research in Düsseldorf on Thursday. The institute now forecasts a growth of 0.5 percent in terms of gross domestic product (GDP) compared to the previous year. For the whole of Germany, the researchers expect a growth of 0.4 percent. In late February, the RWI had predicted a growth of only 0.3 percent for North Rhine-Westfalen.
"The energy-intensive industry in North Rhine-Westphalia has suffered particularly under the high energy prices due to the Russian attack war on Ukraine," the Economy Ministry in Düsseldorf stated. Therefore, the recovery is expected to be stronger in North Rhine-Westfalen than in Germany as a whole. For the coming year 2025, the RWI forecasts a growth of 1.5 percent for both the federal government and the states.
"Production in the manufacturing industry was significantly expanded in the first quarter," said RWI expert Torsten Schmidt. This suggests that this sector will now recover from most of the burdens of the past years. "However, it is not to be expected that the old production levels will be quickly reached again."
Minister: Politics must become "limber"
Economic Minister Mona Neubaur (Greens) expressed her pleasure with the new forecast: "With a better economy, we can tackle the structural problems more easily. Our politics must finally become 'limber' - so that the planet remains livable for future generations," she said. Economy and infrastructure must be modernized. "This requires massive investments - above all from private companies, but also from state institutions."
The president of the Industry and Commerce Chamber of North Rhine-Westphalia, Ralf Stoffels, expressed reservations: "Our current business survey shows that uncertainty in the North Rhine-Westphalia economy is still large." At least, the downturn does not seem to be continuing and the economy is turning towards a sideways movement. "To really gain momentum, we need clear framework conditions with a long-term perspective. Many necessary investments and innovations are still being postponed."
The RWI, based in Essen, publishes three economic reports annually on behalf of the Economy Ministry.
Press releases MWIKE
- Despite the energy price increases caused by Russia's attacks on Ukraine, the economic situation in North Rhine-Westphalia is expected to show more growth than initially anticipated, as indicated by the RWI's latest report in Düsseldorf.
- The high-energy intensive industries in North Rhine-Westphalia have been significantly impacted by the increased energy prices, leading to a stronger recovery prediction for this region compared to Germany as a whole.
- The Federal Ministry for Economic Affairs and Energy (BMWi) in Germany has expressed the need for flexible politics to address structural issues, as the improved economic situation will allow for easier resolution of these problems, ensuring a livable planet for future generations.
- In contrast to the optimism expressed by some, the Industry and Commerce Chamber of North Rhine-Westphalia's president Ralf Stoffels has voiced concerns about the uncertainty lingering in the regional economy, despite the apparent stabilization and sideways movement.
