Economic & Political Stability
Bavaria offers investors a high degree of economic and political stability. It offers low interest rates and low inflation. Germany, and in particular Bavaria, has one of the world’s highest rates of employee productivity. More value is created in Germany per capita than virtually anywhere else in the world.
Economic Strength In Numbers
Bavaria is among the strongest business locations in the world and for years it has been a front-runner in Germany in terms of economic growth. With a per-capita GDP of euro 32,408, the State of Bavaria ranks among the world’s leading economic regions. A major reason accounting for these excellent results is Bavaria’s strong foreign trade. Bavaria’s central location and strong infrastructure allows companies operating in the state access not only to a strong local market but also to increasing export markets.
With Bavaria’s exports totaling some euro 128 billion, in 2005 and an export surplus of euro 29 billion, foreign trade is the driving force behind the Bavarian economy. It is evident that products coming from the State of Bavaria are in great demand worldwide. The USA continues to be the largest buyer of Bavarian made products with a 12% share of total exports, followed by Italy (8.8%), Austria (8.1%), France (8.0%) and Great Britain (7.7%). The main forces responsible for the growth of Bavarian exports are the 25 member states of the European Union with an increase of 9.1% in 2005 and a combined share of total exports of 60.2%. The fastest expanding markets for Bavarian industry include not only Russia and the CIS (Commonwealth of Independent States) but also Southeastern Europe, the Middle East as well as India and the industrialized countries of the Asia Pacific region (Japan, South Korea, Singapore and Australia) Companies located in Bavaria are strategically placed in terms of global competition and systematically take advantage of the opportunities posed by globalization.
For these and other reasons, the Bavarian market presents a wide range of opportunities to foreign companies wishing to invest in the state.
Political Stability
Germany, is a federal democracy that has experienced a continuous period of political stability since the Second World War. Through a well-balanced system of expertise on the part of the federal and state governments political life has developed a measure of variety and creativity unique throughout Europe—which nevertheless ensures a high degree of reliability and continuity for citizens and business enterprises. Germany has a stable government which seldom experiences strikes, making its environment conducive for economic planning.
Even the foreign press has labelled Germany’s system a "consensus democracy." A contributing factor is Germany’s electoral system, which enables political diversity while at the same time ensuring stable majorities. The Bundestag’s electoral period is four years and the members of the Bavarian state parliament are elected for a five-year period. Electoral periods at the district, rural and local government levels are six years.
Bavarian economic policy has always been characterised by a combination of steadiness and openness, tradition and the modern age. Since Bavaria’s first state election in 1946, all of Bavaria’s governors have been from the CSU party, with the exception of three years. Except for the legislative period following elections in the year 1950, CSU members have also constituted the strongest parliamentary party in the Landtag of Bavaria.
The county and towns work together closely and in a spirit of mutual trust and are always ready and willing to offer positive assistance to new business ventures and new residents. On all political levels, action is taken in an objective and target-oriented fashion in the interests of the entire population. |
