Saxony-Anhalt's economy at risk as IHK demands urgent reforms by 2026
The Halle-Dessau Chamber of Commerce and Industry (IHK) has set out its economic policy priorities for Saxony-Anhalt ahead of the 2026 state elections. At its spring general assembly, the organisation adopted a detailed set of demands aimed at tackling long-standing challenges. Leaders stressed the need for urgent action as the region's economy continues to struggle with stagnation.
The policy paper, titled *IHK Halle-Dessau's Policy Positions for Saxony-Anhalt 2026*, covers labour shortages, education gaps, and crippling bureaucracy. IHK President Sascha Gläßer warned that high costs and slow reforms are holding back growth, despite some recognition of the region's strengths in sectors like mechanical engineering.
Saxony-Anhalt's economy has faced persistent difficulties over the past five years. Between 2021 and 2025, the state's population shrank by around 11%, dropping from 2.245 million to 1.990 million. While specific figures on unemployment or GDP per capita remain unclear, the broader East German mechanical engineering sector stabilised in 2022 with a turnover of €18.1 billion. Yet skilled labour shortages continue to plague businesses, adding to broader concerns about competitiveness.
At the assembly, the IHK highlighted four major obstacles: soaring energy prices, high labour costs, excessive taxes, and suffocating red tape. Gläßer criticised the slow pace of reform at the federal level, noting that while policymakers acknowledge the need for change, tangible relief has yet to arrive. The chamber's campaign to promote Saxony-Anhalt's economic strengths received positive feedback, but leaders insisted more must be done to reverse the region's decline. The newly adopted policy positions target seven key areas. These include labour market reforms, education improvements, innovation funding, international trade support, bureaucracy reduction, energy affordability, and infrastructure upgrades. The IHK aims to influence the 2026 election debate by offering concrete proposals rather than vague promises. Assembly members stressed that without decisive action, the state risks falling further behind its peers in eastern Germany.
The IHK's policy paper now serves as a roadmap for discussions with Saxony-Anhalt's government in the run-up to 2026. Business leaders and policymakers will need to address energy costs, labour shortages, and regulatory hurdles to revive growth. The chamber's next steps include pushing for faster reforms at both state and federal levels, with a focus on turning economic stagnation into measurable progress.
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