Investment in industry declines
Industrial investment in Saxony-Anhalt fell by 9.3 percent last year compared to the previous year. According to the State Statistical Office on Tuesday, companies in Saxony-Anhalt invested around 1.47 billion euros in 2022. According to the figures, investments fell by 12% in the manufacture of chemical products and metal production in particular. Companies invested more heavily in the pharmaceutical industry in particular.
The decline in investment should not be overestimated, said the Vice President of the Leibniz Institute for Economic Research Halle (IWH), Oliver Holtemöller, when asked. Although this has an impact on the future economic strength of the region, it is to a certain extent a normal international process. The share of industry in production is decreasing overall, while services are increasing.
Holtemöller sees a decline in investment, particularly in energy-intensive sectors. Investment activity here has been relatively weak in Germany for some time. In addition to the energy price shock, political uncertainty and rising interest rates, demographic change should not be neglected, according to the economist. As the number of people of working age in Saxony-Anhalt will decrease significantly in the coming years, companies making long-term investments will have to ask themselves whether they will be able to find enough employees to operate the plants in the future.
The economic situation of the company sector in Saxony-Anhalt was affected by the decline in industrial investment, contributing to the overall decrease in industry's share in production. Given the energy price shock, political uncertainty, rising interest rates, and demographic change, investment activity in energy-intensive sectors, specifically within the company sector, has been relatively subdued.
Source: www.dpa.com
