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Northern Germany's Economy Defies National Downturn with Q4 Growth

Driven by a booming defense industry, northern states like Niedersachsen outpaced the rest of Germany, though economic pressures persist in key sectors.

Im Hamburger Hafen sieht man die Entwicklung der Weltwirtschaft mit Sorge – auch wenn es Teilen der heimischen Industrie derzeit besser geht als befürchtet
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Overview

  • Niedersachsen led northern Germany's economic growth in Q4 2024 with a 1.4% GDP increase, outperforming the national decline of 0.2%.
  • Mecklenburg-Vorpommern and Schleswig-Holstein also posted strong GDP growth of 1.1% and 1.0%, respectively, highlighting regional economic divergence.
  • The defense industry played a pivotal role in the north's economic resilience, decoupling its performance from the broader national downturn.
  • Regions like Sachsen and Sachsen-Anhalt experienced significant contractions, with GDP declines of 1.8% and 1.4%, respectively, reflecting uneven regional performance.
  • Despite growth in the north, sectors such as trade and corporate services face challenges, including revenue declines, rising costs, and labor shortages.