Economic growth in the region remains sluggish, with recovery progressing at a snail's pace.
In the heart of northwest Germany, the Osnabrück-Emsland-Grafschaft Bentheim region is navigating through an economic recovery with a mix of challenges and progress.
According to the latest reports, the default rate in the region has seen a slight increase compared to the previous year. In the first half of 2024, 374 companies were classified as defaults, representing a default rate of 1.29%. This is a slight increase from the 327 companies (default rate 1.13%) in the same period last year.
The construction sector has been particularly hard-hit, with the default rate rising from 1.68% to 2.22%. The transport sector, too, remains subdued, partly due to the increased truck toll. Retail, on the other hand, has a slightly more relaxed situation, with a decreased default rate of 1.23%.
The manufacturing sector, however, has fared slightly better than the national average, with 31 companies (1.33%) defaulting. The wholesale trade assessment remains very negative.
Despite these challenges, there are signs of hope. Export expectations are rising in line with a recovering global trade. Retail, though struggling with weak demand and higher prices, has seen a decrease in defaults.
The business climate index in the region improved slightly in the end of Q2 2024, but remains significantly below the long-term average. Every fifth default in the region affects construction, and among the companies classified as defaults, mostly companies with up to four employees are affected.
Frank Hesse, head of the economic policy department at the IHK, states that hopes for a strong foreign business or a recovering domestic demand have not yet been confirmed. He emphasises that the economy continues to struggle with weak domestic demand and structural issues like high energy and raw material costs, labor shortages, or bureaucratic burdens.
The 'growth package' of the federal government, aimed at providing positive impulses, can play a crucial role. The quick implementation of these laws is essential to take effect. An important signal is the extension and expansion of the degressive depreciation for investments.
As the region continues its economic recovery journey, it is crucial to focus on promoting digital transformation, supporting small and medium-sized enterprises (SMEs), investing in renewable energy and green technologies, improving workforce skills, and strengthening transport and logistics networks. For precise, up-to-date details on Osnabrück-Emsland-Grafschaft Bentheim’s economic recovery, official regional economic reports, local government publications, or specialized economic analyses would be necessary.
The and sectors have experienced considerable struggles in the Osnabrück-Emsland-Grafschaft Bentheim region, with the default rate rising significantly in the construction sector and the transport sector remaining subdued. On a somewhat positive note, the manufacturing sector has fared slightly better than the national average.
To stimulate growth and foster economic recovery, the 'growth package' from the federal government can play a crucial role by providing positive impulses, promoting digital transformation, supporting small and medium-sized enterprises (SMEs), investing in renewable energy and green technologies, improving workforce skills, and strengthening transport and logistics networks.
