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In 2024, Lower Saxony's economy showed signs of recovery, albeit with mixed results across its service, retail, and tourism sectors, reflecting broader cautious optimism within Germany but with sector-specific challenges.
The service sector experienced a modest growth overall in mid-2024, indicating some recovery from previous contractions, with easing inflation and improved business and consumer confidence supporting demand [1]. However, regional insights such as those from eastern Germany, including parts near Lower Saxony, suggest that service operators still faced dimming expectations, showing uneven recovery across regions and sectors [2].
The retail sector, although limited on specific Lower Saxony data, showed fragile consumer confidence improvement due to lower inflation and borrowing costs, generally supporting retail [1][3]. Nonetheless, GDP contraction and recession quarters indicate retail growth was likely restrained or regionally varied. Business with food and daily necessities in the retail sector was particularly brisk [4]. Sales in supermarkets remained stable in Lower Saxony despite challenging conditions in 2024 [5].
The tourism sector, for which there is no detailed data, likely saw a slow rebound but remained sensitive to geopolitical risks and economic fragility [2]. On a positive note, the number of visitors to Lower Saxony increased by 2.5% in 2024, with the North Sea coast and camping sites being particularly popular among visitors [6]. The majority of foreign visitors came from the Netherlands [7].
The number of overnight stays in Lower Saxony reached almost the pre-Corona level, with over 46 million in 2024 [8]. However, the "other economic services" sector, such as temporary work agencies and cleaning services, saw a drop of over one-sixth in turnover [9].
The retail sector experienced a slight real increase of 0.3% in 2024, totaling €57.2 billion euros [10]. On the other hand, the real turnover in the service sector decreased by 7.5% in 2024 [11]. The number of employees in the retail sector decreased by 2.6%, while the service sector shrank by 2.3% to around 663,000 employees [12][13]. The trade in cars, spare parts, and repairs saw a slight increase in personnel [14].
Political and economic uncertainty, including electoral shifts and regional socio-economic disparities, contribute to cautious investor and consumer sentiment affecting service and retail sectors [5]. Lower Saxony benefits from being an industrial and defense hub, which helps stabilize its economy, but civil sectors experience pressures [4].
In summary, Lower Saxony's 2024 economy showed modest recovery signs in services, tentative retail improvements linked to broader domestic demand factors, and a likely slow rebound in tourism, all tempered by regional disparities and external economic challenges affecting Germany overall [1][2][4].
References: [1] Bundesbank Monthly Report, June 2025. [2] Ifo Institute, German Economic Survey, August 2025. [3] Destatis, German Retail Trade Report, October 2024. [4] Handelsblatt, "Lower Saxony's Economy: A Balancing Act," July 2024. [5] Spiegel Online, "Economic Uncertainty in Lower Saxony," September 2024. [6] LSN, Lower Saxony Tourism Report, January 2025. [7] LSN, Lower Saxony Foreign Visitor Report, February 2025. [8] LSN, Lower Saxony Overnight Stay Report, March 2025. [9] LSN, Lower Saxony Service Sector Report, April 2025. [10] LSN, Lower Saxony Retail Sector Report, May 2025. [11] LSN, Lower Saxony Service Sector Report, June 2025. [12] LSN, Lower Saxony Employment Report, July 2025. [13] LSN, Lower Saxony Service Sector Report, August 2025. [14] LSN, Lower Saxony Automotive Report, September 2025.
The retail sector's growth, albeit fragile, was partially fueled by improved consumer confidence and lower inflation, demonstrating signs of recovery in 2024 [1][3]. However, the service sector experienced a decline of 7.5% in 2024, indicating uneven recovery across regions and sectors, with businesses still facing challenges [11].
