Economy in Munich: Entrepreneurs are worried about the future

Economy in Munich: Entrepreneurs are worried about the future

What is happening in the economy around Munich? Many companies in the region are currently facing major challenges. Customs duties, high costs, a lack of skilled workers and annoying bureaucracy are just some of the worries that plague entrepreneurs. This is shown by a current survey by IHK for Munich and Upper Bavaria, which gives an insight into the mood of numerous companies in the districts around Munich.

The good news: Many entrepreneurs are hoping for a slight improvement in business, but one in five companies is planning to cut jobs. The IHK economic index rose by four points to 110, but remains below the long-term average of 118 points. A clear trend reversal is not yet in sight; the economy continues to drag “sideways”.

Shortage of skilled workers and investment plans

The assessment of the current situation by the company bosses is also interesting: 26 percent rate their situation as good, while 18 percent see it as bad. Far more companies, namely 70 percent, cite a lack of demand as the biggest problem. Another major risk is the lack of domestic demand, which 62 percent of companies see as a threat.

A no less urgent issue is the lack of personnel: 45 percent of companies see this as a central problem. While 12 percent of companies are planning to increase their workforce, 20 percent are thinking about cutting jobs. The IHK also predicts rising unemployment in the region. IHK Vice President Otto Heinz appeals to the federal government to do more to reduce bureaucracy and reduce energy prices.

Economic policy framework in focus

Entrepreneurs are dealing with a difficult legacy: 59 percent of those surveyed see the difficult economic policy conditions as the reason for the current misery. A survey by the DIHK shows that almost 60 percent of aspiring entrepreneurs in Germany are dissatisfied with the location conditions, which was even more dramatic during the Corona pandemic.

But there are also positive developments: The Munich region still has potential, especially in the tech and defense sectors. The entrepreneurs are also planning investments in the future, especially to increase efficiency. 27 percent of companies would like to increase their investment volume, while 19 percent want to reduce it.

The global economy is changing

This review of the regional economy is part of a larger picture that is also characterized by numerous challenges internationally. The DIHK report on starting a business has shown that despite the pessimistic mood, there are also opportunities in climate protection and digitalization, provided the framework conditions are right. Companies are increasingly facing the challenges of a global economy strained by U.S. trade policies and new regulations.

For many companies it means rolling up their sleeves and finding creative solutions. Given this situation, it can be helpful to give yourself a little break and try out DIY recipes for relaxation and regeneration, such as baths that reduce stress and revitalize the body. An article from advises this YouAligned, where five recipes are presented that offer natural remedies for relaxation.

Overall, the economy in the Munich region remains an exciting topic that, despite all the challenges, also has a lot of potential. Whether the region takes the right steps to play to its strengths and emerge from the crisis will become clear in the coming months.