Lower Saxony's companies are worried about the future: no optimism!

Lower Saxony's companies are worried about the future: no optimism!

Lower Saxony's economy will show a picture of stagnation in the summer of 2025. According to a current survey by the Lower Saxony Chamber of Industry and Commerce (IHKN), entrepreneurs are optimistic. Of the approximately 2,400 companies surveyed, only 21% rate the situation as good, while 54% are satisfied with the current situation and 24% classify it as bad. This development is reinforced by a general distrust of the political framework. Only 13% of companies have hope for an improvement soon, while the majority expect business to remain the same.

IHKN General Manager Maike Bielfeldt criticizes the lack of reliability in politics and insists on clear framework conditions that are necessary for a prosperous economic climate. The introduction of the industrial electricity price should be highlighted positively, but Bielfeldt is of the opinion that trade and services in particular were not sufficiently taken into account. Their demands also include a reduction in bureaucracy and real structural reforms in social security.

Industries under pressure

Economic uncertainty has hit various industries hard. The homebuilding industry is suffering from high interest rates, while the wholesale trade is struggling with uncertainties surrounding tariffs. Almost a third of companies have a pessimistic forecast: they expect a decline in foreign business. These concerns are compounded by ongoing trade tensions, particularly around new US tariff announcements. These could put additional pressure on the weak economy in the euro area and act as a brake on economic development, as the Bundesbank has stated.

The results of the survey also show that sectors such as banks and temporary employment agencies are expecting a more positive future. Energy-intensive companies also seem to be looking a little more optimistically. Another highlight is that more companies were founded around Osnabrück last year than anywhere else. Nevertheless, the fundamental situation remains tense.

The challenges of the future

The current challenges facing the Lower Saxony economy are complex. In addition to high interest rates in housing construction, uncertainty in wholesale trade also remains a major issue. As Bielfeldt notes, orders from the infrastructure special fund simply do not arrive. The arms industry also faces a difficult path: the defense budget was increased and security steel was certified by the Bundeswehr, which gave the share price a boost of 20%. But the obstacles remain and a long-term plan is essential.

In summary, it can be said that it is time for Lower Saxony's economy to set a new course. Clear, reliable policies and a strong focus on infrastructure investment could bring about a turnaround. At the moment, however, the situation remains in limbo and a rethink is urgently needed in order to get back on the right track.

For further information, see the reports from NDR, n-tv and Bundesbank.