Government financial strategies - Hamburg's business advancement maintains employment for thousands.
Due to the hard financial times, the amount of new businesses settling in Hamburg dropped compared to the previous year. The SPD's Economic Senator, Melanie Leonhard, and Rolf Strittmatter from Hamburg Invest announced this on Tuesday while presenting the annual statistics. The number of jobs generated through economic development went down from 2,421 to 1,392, according to the report.
The success of securing jobs through economic development in Hamburg rose to 7,471, which was an increase of nearly 2,500 compared to the previous year. At a total of 8,863, the employment balance for 2023 was significantly better than in the preceding year (7,398) - a result that Leonhard called "overall positive," stating, "This allows us to keep skilled workers in Hamburg in the long run."
The focus of economic development has shifted to Scandinavian companies. With the geopolitical scenario changing, partnerships with European nations are becoming increasingly crucial, especially in Scandinavia. As Hamburg is the southern metropolis of Scandinavia, it's a desirable location for Nordic neighbors due to its access to the German and European market. Both parties share common strategic objectives, including the availability of renewable resources, climate targets, mobility, and investments in eco-friendly technologies.
Last year, Hamburg Invest supported 930 businesses (compared to 954 in 2022). The number of companies experiencing growth as a result of this support increased to 40 from 39 the previous year.
Hamburg Invest made available approximately 24 hectares of land, with 16.3 hectares being municipal land. The investment volume decreased from 828 million euros in 2022 to 502 million euros in the past year.
Large-scale economic effects occur through new or secured jobs
Strittmatter was content with the annual results, "especially considering the current dampened investment climate resulting from high interest rates and increased expenses for construction and energy costs." Additionally, more jobs were created or secured by the new or maintained jobs, as these spending effects lead to further influences in other sectors and businesses, resulting in a total job impact of 17,000 for the previous year. Furthermore, the fiscal effects of 150 million euros also came from economic development.
Opposition voices concerns about Hamburg's weakening economic standing
In the eyes of CDU parliamentary group's economic expert, Götz Wiese, these figures mostly demonstrate one thing: "The Hamburg economy is under threat from being permanently weakened by the SPD and Greens. There are fewer new businesses, fewer new jobs compared to the year before. The lack of noticeable new establishments is particularly upsetting. Despite this, Hamburg Invest still has 70 hectares of land in reserve."
