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Pulse of East German Businesses: "Pessimism Outweighs Current Conditions"

Pessimistic Outlook Among Eastern German Businesses: 'Reality is More Optimistic Than Perceived Attitudes'

Turbines Turning in Briesensee, Brandenburg: A Spinning Display of Renewable Energy Production in...
Turbines Turning in Briesensee, Brandenburg: A Spinning Display of Renewable Energy Production in This German Region

A Pessimistic Outlook for East German Companies: "Spirits Sink Below Reality"

Pulse Taken Among Eastern German Businesses: 'Sentiment More Negative Than Current State' - Pulse of East German Businesses: "Pessimism Outweighs Current Conditions"

Let's dive into the latest findings from the Transformation Barometer 2025, conducted between March and April this year, surveying a whopping 1,500 decision-makers in private-sector companies in East Germany with at least ten employees. Despite East Germany being considered a promising economic region since the initial survey in 2022, only 56% still have faith in its economic potential.

  • Survey
  • East Germany
  • Economic stagnation
  • Political skepticism

The three biggest growth sectors according to respondents are renewable energies, microelectronics, and tourism, each garnering around 30%, 19%, and 18% of the vote respectively. However, a staggering 40% believe that there will be no significant growth in any industry.

The economic situation in East Germany is rated negatively by 45%, with the figure rising to 50% among companies with 250-999 employees. The gloomiest opinions can be found in Thuringia, while Brandenburg remains the most optimistic.

The top challenge faced by East German businesses, as reported by nearly half (46.6%) of the respondents, is the skills shortage in the region. Close behind, both energy prices and political radicalization are mentioned by almost as many respondents.

The majority (68%) of respondents call for the federal government to curb bureaucracy, while half (50%) urge action to lower energy prices. Interestingly, 58% do not believe that the new government will take effective measures to stimulate economic growth in Germany as a whole.

The East German Economic Forum, established in 2016, serves as a meeting point for politicians, businesses, academia, and society to discuss matters pertaining to East Germany's economic well-being. Each year, an annual economic conference takes place in Bad Saarow, Brandenburg.

  • Economic uncertainty
  • Regional leadership
  • Growth sectors
  • Federal government intervention

While the report does not specify the growth sectors in East Germany in detail, the focus on rejuvenating the overall economy sheds light on the need for diverse initiatives to drive growth in various sectors. Moreover, there's a growing call from regional leaders, like Manuela Schwesig, for Berlin to show stronger, more decisive leadership in supporting East Germany's economy, given the three years of economic stagnation and skepticism from the companies in the region.

  • The Transformation Barometer 2025 reveals that renewable energies is one of the three leading growth sectors in East Germany, suggesting a potential focus on vocational training in this industry.
  • In light of the high energy prices and the increasing need for skilled workers, the call for vocational training programs in the renewable-energy sector could be critical for East German businesses and the overall economic growth.
  • To stimulate economic growth in East Germany and alleviate the economic uncertainty, there's a growing consensus for the federal government to take action by lowering energy prices, reducing bureaucracy, and increasing support for vocational training programs, especially in the renewable-energy industry.

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