Economic performance in Saxony: decline despite the east trend!

Economic performance in Saxony: decline despite the east trend!

Dresden, Deutschland - Dresden is experiencing a dramatic decline in its economic output, while the east of Germany has a moderate growth overall. According to a current forecast of the Ifo Institute, the gross domestic product in Saxony will drop by 0.5 percent this year, which throws the region back behind the nationwide average forecast of minus 0.1 percent. The main cause of this decline is the solid dependence on the automotive industry, which is under pressure through a falling demand for electric vehicles, factory closures and operational terminations. Volkswagen is particularly affected, where more than 10,000 employees are employed. In contrast, a low growth of 0.3 percent is predicted for the entire east of Germany, which indicates a strong expansion of the service industry, as Blick.de

Different developments in the east

The service -oriented sector in the east is resistant to the challenges of a weakening industry. Joachim Ragnitz, deputy head of the IFO Institute in Dresden, comments on the fact that the service areas in East Germany grow strongly while the importance of industry decreases. In Saxony, on the other hand, there is also a decline in the construction industry of 4.9 percent, which is above the East German average of minus 4.3 percent. However, there is hope for a trend reversal for 2025: a moderate growth of 0.4 percent is predicted in Saxony, and East Germany could increase by 0.7 percent, which is expected from a stabilizing consumption demand, as well as Volksstimme.de emphasized.