Economic survey: Bavarian economy overcomes first corona shock
10.22.2020 01:00 Economy
The Bavarian economy has mostly recovered from the historic slump caused by the Corona pandemic. The economic index of the Association of Bavarian Chambers of Industry and Commerce (BIHK) has fallen from 81 to 107 points since May and is currently just below the long-term average.
According to the Association of Bavarian Chambers of Industry and Commerce autumn economic report, this rapid recovery marks the biggest rise between two consecutive surveys since 1993. Around 4,000 companies in Bavaria took part in the survey at the end of September.
"The Bavarian economy has recovered from the Corona shock faster than expected. More than two thirds of the way back to pre-crisis levels has already been covered. However, the dynamic of the recovery will slow down considerably in the coming months. A complete return to the pre-corona level is not to be expected until 2022 at the earliest", said BIHK Chief Executive Officer Manfred Gößl.
In the survey which was conducted at the end of September, the continuing corona-worries have already considerably worsened the companies' prospects. So far, the companies are still reporting a significantly better business situation than in May. The corresponding balance value rose from minus 18 points to plus 9 points. However, the companies expect only little growth in the coming months. Their business expectations have raised considerably from minus 20 to plus 5 points. Compared to recoveries after past recessions, this value is rather disappointing.