German regional economies face stagnation amid high costs

Recent surveys from Chambers of Industry and Commerce (IHK) indicate continued economic stagnation across several German regions, specifically in the Bergisches Land and Südwestfalen areas.

In the Bergisches Land region, an IHK survey of 504 companies shows that 33 percent rate their current situation as poor, while only 18 percent rate it as good. The business climate balance has dropped to minus 15 points. While credit institutions report improved margins due to higher interest rates, the industrial, transport, and retail sectors are struggling. High fuel prices and weakened consumer purchasing power are particularly impacting retail. IHK President Henner Pasch noted that nearly one-third of companies fear a decline in turnover in the coming months.

Similarly, in Südwestfalen, a survey of over 1,250 companies reveals weak future prospects and a lack of investment willingness. Approximately 20 percent of industrial companies are considering relocating all or part of their operations due to rising costs and weakening export expectations. The primary risks cited by 75 percent of respondents are high energy and raw material prices, alongside high labor costs and excessive bureaucracy.