Bavaria's economy: modern and efficient
Bavaria’s gross domestic product of EUR 716,8 billion (2022) puts it ahead of 20 of the 27 EU member states. The economic output per resident is also far above the German and European average (2021), at EUR 50.289.
As a globally active market, Bavaria is home not only to global players such as Adidas, Allianz, Audi, BMW, MTU Aero Engines, MAN and Siemens, but also to a strong basis of small and medium-sized businesses in industry, trades and the service sector. Investors thus encounter a broad spectrum of competitive suppliers, potential customers and cooperation partners.
Bavaria enjoys an outstanding position in many fields:
- The Free State is the number one location in Germany for insurance and number two for banking
- Bavaria is number one in Germany for tourism
- The two trade show centres in Munich and Nuremberg are of great international significance
- Bavaria offers optimum provision in the fields of transportation, telecommunications and energy
- High-level apprenticeships and further training and intensive promotion of research and technology have contributed to Bavaria achieving top values in international comparison, spending three per cent of the gross domestic product on research and development.
Bavaria's economy at a glance
per cent – the growth in GDP (2010-2020)
EUR – the disposable income per resident (2020)
per cent – Bavaria's share of German patent applications (2020)
the number of people who have moved to Bavaria (net migration 2020)
101 projects were completed by Invest in Bavaria in 2020, 89 of them alone cases of new locations. Last year, 2.654 new jobs were created throughout Bavaria. The companies supported, including many start-ups, came from 24 different countries of origin – proof that Bavaria is valued as a leading location for innovation worldwide.
Innovation is white and blue:As in previous years, Bavaria once again ranks top among the most active federal states for patents in the 2017 annual report by the German Patent and Trade Mark Office (DPMA). The high level of innovation is proved by the current “Innovation Atlas 2017 – A comparison of the German economic areas’ innovation" study by the Cologne Institute for Economic Research (IW).
Global Startup Ecosystem Report 2018 - Munich is playing in the premiere league:Munich is highlighted as being the top German location of global importance in the world’s most important start-up ecosystem study. The location is attributed with having superb qualities in the “Healthcare and Life Sciences” sector and the FinTech and Mobility/Advanced Manufacturing/Robotics sector.
Bavaria – a strong industrial location with a future: Bavaria is a successful industrial location. According to a recent study from Prognos AG on the behalf of vbw, the State will be able to take on a leading role thanks to its strong industry even in the coming decades.
Cities & Regions
Bavaria is the largest state in the Federal Republic of Germany. Over twelve million people live and work in its over 70,000 square kilometres, divided into seven administrative districts.
As well as the eight cities with more than 100,000 inhabitants, including the two largest, Munich and Nuremberg, the rural areas are also very significant for Bavaria. They make up around 85 per cent of the state's area and just under eight million people, or almost 60 per cent of the Bavarian population, live, work and do business there.
More information and statistical data on a range of economic sectors
You can find statistical data on a range of economic sectors from the Bavarian State Office of Statistics.