About Bavaria > Economy

Bavaria's economy

A business location with a prosperous future

Munich AirportBavaria's benefit from economic change

From today's point of view it was undeniably a historical stroke of luck that Bavaria was hardly affected by decline of the heavy industry due to the late onset of the industrialization in Bavaria. Thus, it was possible to built today's modern industrial structures without having to deal with past blunders. The inflow of refugees and expellees as well as the relocation of companies from Middle and Eastern Germany brought additional manpower and entrepreneurial potential to the country. Siemens, Osram, Agfa and Audi, for example,  are companies that relocated their headquarters to Bavaria due to the division of Germany. But it takes more than just luck. One has to seize the opportunity.

Bavaria's economy and politics did so, and it is this clear-sighted and decisive grasping of opportunities why a retrospect on 50 years of Bavarian economic policy dos not only show the results of an impressive economic development, but also the story of a consistent and offensive realization of the chances brought by a sometimes difficult economic change. Bavaria, however, also had to undergo several structural breakdowns in mining, the textile and clothing industry and the porcelain sector. But we did not resist these changes, we rather turned to new developments, teamed up with progress and actively took up the new challenges of competition. The entrepreneurial spirit of world-renowned local companies combined with the Bavarian middle class, the excellent expert knowledge and technical skill of Bavarian employees, has made this long-term future-oriented policy the basis of our macroeconomic success.

One of the strongest economies in Europe

Bavaria's gross domestic product of 385.2 billion Euro exceeds that of 19 out of 25 EU member states. The economic output of 30.993 Euro per citizen is far beyond the German and European average (2004). Our purchasing power is one of the highest worldwide. International comparative studies attest excellent location qualities to Bavaria, and Munich and its surrounding region can be found in top positions again and again.

The Free State of Bavaria, which used to be an agricultural state only 50 years ago, has now become "Europe's high-tech Mecca" (Microsoft boss Bill Gates referring to Bavaria), the center of the "New Economy" and an economic partner with a worldwide presence. The exporting record of 118 billion Euro in 2004 emphasizes the high international competitiveness of Bavaria's economy.

A modern and efficient economy

1. Apart from global players such as Siemens, Audi, BMW, EADS, Adidas-Salomon and MAN, Bavaria's economy is also characterized by a tight network of small and medium sized industrial companies, trading and service businesses. Each investor will find a broad range of competitive suppliers, buyers and co-operation partners.

2. Bavaria leads nationally and internationally in almost all new sectors of technology from information and communication technology to biotechnology, gene technology, energy and environmental technology. The Free State of Bavaria is an attractive region for high-tech companies.

3. Service is first priority in Bavaria: Bavaria is the German number one location for insurance companies and number two for banks. Tourism is also on top position in Bavaria. The Munich and Nuremberg trade fairs are internationally significant. Company-related services with high Economic Value Added (EVA) are developed above-average in the Free State.

Bavaria, the center of innovation offers:

1. Excellent infrastructure in the fields of transportation, telecommunication and energy that guarantees optimal supply and accessibility to international market places.

2. A high level of education and further education.

3. Full-scale support of research and technology, which contributed to Bavaria's international top positions with 2.7% of its BIP spent on research and development.

4. Modern Bavaria has also maintained its attractive natural and social location factors such as a wide variety of cultural offers, traditions, diverse recreational opportunities, intact nature and maximum internal security.

Groundbreaking Bavaria

The Bavarian government reinvested 4.2 billion Euro from privatization into the modernization of economy, state and society. This took place under two economic offensives named "Offensive Future Bavaria" and "High-Tech Offensive".

In doing so, Bavaria has systematically boosted its competences in future technology areas such as information and communication technology (ICT), life sciences, new materials, mechatronics, energy and environmental technology as well as nanotechnology.

Further steps will follow the successful launch of the European Galileo program to position the Free State as the competence center for Europe's satellite navigation. The expansion of research and development (R&D) structures and the promotion of innovative information and communication technology businesses (ICT) is a continuing mission in Bavarin politics.

Future-oriented Bavaria
Apart from boosting our high-tech competence, we also focus on:

1. Promoting new businesses

2. Further internationalization of science and economy

3. Increasing the quality of our educational system

Cosmopolitan Bavaria

To date more than 1.200 foreign companies have located in Bavaria operating successful worldwide business from here.

If you have any questions, require information or intend to invest in Bavaria, do not hesitate to contact us.

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