Mood in Hamburg's economy improves, says Chamber of Commerce

Economic barometer indicates improved outlook on future
27 April 2023
Das Hauptgebäude der Handelskammer Hamburg

The number of Hamburg-based companies that expect the economic situation to deteriorate within the next year has dropped from 37 per cent in Q4 of 2022 to 24 per cent Q1 of 2023, according to the Chamber of Commerce's survey of 590 companies for its latest economic barometer. The upswing bodes well for the outlook on the future as well.

More favourable business situation expected despite risks

"Hamburg's economy is gradually heading towards normality," said Dr Malte Heyne, CEO of the Chamber of Commerce in Hamburg. Around 19 per cent of interviewees are expecting a more favourable business situation compared to only 11 per cent in December. "Many companies are fighting their way out of crisis mode, looking towards the future and tackling new projects. Investments are planned, e.g., in product innovation or environmental protection," he added. The shortage of skilled labourers, high energy costs and raw material prices as well high labour costs pose the biggest risks. While the risks in relation to energy prices has decreased, rising labour costs are now making for another risk.

Differences in economic sectors

The indicator has moved closer to the average value of the surveys since 2000 (108 points) with 104.3 points. However, the mood in some sectors is still below average, e.g., in transport, retail, wholesale and foreign trade, but especially in media. Around 74 per cent of interviewees are also more relaxed about borrowed capital and increased interest rates compared to December.