Lower Saxony on the abyss: business shrinks - is the recession close?

Lower Saxony on the abyss: business shrinks - is the recession close?

The North German Landesbank (North/LB) has predicted weak economic development for Germany and especially for Lower Saxony in its latest forecast for 2025. According to the forecast, the real gross domestic product (GDP) in Germany will only grow by 0.2 percent. For Lower Saxony, a decline in GDP is even forecast by 0.1 percent, which is due to the high dependence on the automotive industry. In advance, a similar decline in GDP in Lower Saxony is expected of 0.1 percent for 2024.

In 2023 there was already a preliminary decline in economic output in Germany by 0.2 percent. Uncertainties that were triggered by the Protectionist agenda by Donald Trump also burden the economy. Above all, impending higher trading tariffs could have a negative impact on export -oriented German companies. Christian Lips, chief economist of the North/LB, warned that the German economy could slide into a recession should be unfavorable economic developments.

negative mood in the automotive sector

The mood in Lower Saxony, especially in the automotive and supply industry as well as in energy-intensive sectors such as chemistry, paper, glass and metal production, is extremely pessimistic. Despite the potential that arises from the expansion of renewable energies and the hydrogen economy, it is feared that they are not sufficient to compensate for the burdens from other economic areas.

For further data on the development of gross domestic product in Lower Saxony from 1970 to 2023, detailed statistics are available. This was created and published by the federal and state statistical offices. The corresponding data can be viewed here, such as Statista reported.

The overall economy of Lower Saxony will therefore be confronted with challenges in the coming year, and it remains to be seen which measures will take after the upcoming new elections in February to tackle the existing economic and structural crisis.

For detailed information on the forecast of the North/LB and the economic framework in Lower Saxony, click .

-transmitted by West-Ost-media