Baden-Württemberg economy: The weak phase continues (in German).
According to the current nowcast of the Institute for Applied Economic Research (IAW) and the University of Hohenheim, the Baden-Württemberg economy will grow by 0.4 percent in the second quarter of 2023 compared to the previous quarter. Together with the forecasts for the third and fourth quarters, this results in a projected growth rate for 2023 as a whole of 0.6 percent compared to 2022. This would mean that the economy would only grow by half as much as in 2022.
Press release March 16, 2023
Baden-Württemberg in winter recession (in German).
In the first quarter of 2023, the economy in Baden-Württemberg is expected to decline by 0.2 percent compared to the fourth quarter of 2022, adjusted for seasonal and working-day effects. According to preliminary calculations, economic output already declined by 0.3 per cent in the previous quarter. According to the common definition, Baden-Württemberg is then in a recession phase.
Baden-Württemberg in the Winter Recession.
In the first quarter of 2023, the economy in Baden-Württemberg is expected to contract by 0.2 percent compared with the fourth quarter of 2022, adjusted for seasonal and working-day effects. Already in the previous quarter, according to preliminary calculations, economic output already declined by 0.3 percent in the previous quarter. According to the commonly used definition, Baden-Württemberg is then in a recession phase.
Baden-Württemberg labor market: demand for skilled workers remains high.
The shortage of skilled workers is an increasing problem for companies in Baden-Württemberg. The long-term trend clearly points in this direction. Against this backdrop, a recent IAW study commissioned by the Baden-Württemberg Regional Directorate of the German Federal Employment Agency addresses the question of the extent to which company strategies can counteract the shortage of skilled workers. The results show, on the one hand, that companies in sectors with a shortage of skilled workers systematically apply certain strategies more frequently than other companies: For example, further training is more likely to be offered by companies that are more affected by the shortage of skilled workers. On the other hand, reorganizations are geared to the availability of skilled workers. For example, they do not increase in-house production if no skilled workers are available. And companies with a higher proportion of vacancies invest more frequently in digitization.
According to the latest nowcast from the IAW and the University of Hohenheim, Baden-Württemberg's gross domestic product (GDP) declined by 0.2 percent in the fourth quarter of 2022 compared with the previous quarter, after adjusting for prices and seasonal factors. Slight economic growth of 0.3 percent is again forecast for the first quarter of 2023. The predicted economic situation thus deteriorates compared with the previous nowcast of September 2022.
