Medium-sized businesses in Saxony-Anhalt: The mood continues to deteriorate!

Medium-sized businesses in Saxony-Anhalt: The mood continues to deteriorate!

In Saxony-Anhalt, the mood among medium-sized businesses is anything but rosy. According to a current survey by the Leibniz Institute for Economic Research Halle (IWH) and Creditreform, only 49.5 percent of the approximately 400 companies surveyed rate their economic situation as good or very good. In the previous year this value was 51 percent. A significant decline that underlines the worrying trends in the region, as well Picture reported.

The numbers are alarming: almost 10 percent of medium-sized companies are confronted with a poor or inadequate situation. The growing decline in sales is particularly burdensome - 30.7 percent of the companies surveyed had to accept losses, while only 23.6 percent reported increasing sales. This dismal balance extends to all sectors, with industry and retail in particular suffering from noticeable consumer reluctance star holds on.

Reasons for the negative development

The worrying situation is influenced by several factors: At 46.6 percent, the willingness to invest has reached its lowest level in a decade. This not only creates uncertainty among entrepreneurs, but also causes many companies to rethink their location. Positive exceptions are companies in the manufacturing sector that are at least planning to invest and increase their workforce.

“The economic turnaround has been postponed until next year,” says Martin Plath, Managing Director of Creditreform. The gloomy forecasts show that only 20.9 percent of companies expect increasing sales for 2025 - a significant decline compared to 25.3 percent in the previous year. The bureaucratic obstacles also contribute to dissatisfaction. 77.4 percent of companies complain about increasing bureaucratic burdens, which are making it increasingly difficult to gain a foothold in day-to-day business.

Outlook and challenges

The situation is serious and many companies are grappling with the reality of skills shortages that are slowing the recovery. According to the companies, the bureaucracy is not only causing increasing costs but also longer waiting times for customers. Over 80 percent of companies report that the increasing requirements are making their products more expensive and robbing them of the time they need for day-to-day business.

The results of the survey are sobering for the ruling coalition in Magdeburg, especially with regard to the upcoming state elections. The challenges facing medium-sized businesses in Saxony-Anhalt are serious. It remains to be seen what measures politicians will take to stop this trend and open up new perspectives for companies.