MUNICH "Bavaria’s economy has also proved its strength during the first half of 2008. As was already the case in 2007, the gross domestic product increased by 2.8 percent in real terms. This was the second highest rate of growth for all of the German states, following Saarland and equal to Saxony-Anhalt. It clearly exceeded the national result of 2.4 percent. Consequently, the State of Bavaria is continuing its fast-track course when it comes to growth. Above all, this growth can be attributed to the dynamic people and innovative companies in Bavaria. However, the above-average growth also shows that we have properly set the course in terms of economic policy," is how Bavaria’s Economics Minister Emilia Müller explains the latest calculations of the ‘Volkswirtschaftliche Gesamtrechnungen der Länder’ (Working Group on National Accounting by the German States).
Contributions to growth came from both manufacturing and the building trade, as well as from commerce, the hotel and restaurant industry and transport. "I also expect a two in front of the decimal point for this year’s overall result," said the Minister. However, she warned against taking the outstanding performance of Bavaria as a matter of course because important indicators signal a weakening of business activity: Risks to the global economy are increasing, not least because of the financial crisis.
Müller: "As a result, it is even more important for us to maintain our economic course now. Only with proactive and predictable policies that are not dependent on coalition compromises can we ensure future growth, prosperity and employment for Bavaria in close partnership with industry, small and medium-sized businesses and the trades." The objective is to preserve a positive investment climate, encourage innovations and provide relief for the business community and the citizens to secure stability and confidence in the future.
The following table provides information on economic development during the 1st half of 2008 in the individual federal states:
Gross domestic product in real terms (changes for 1st half of 2008 from 1st half of 2007 in percent):
Saarland 3.4
Bavaria 2.8
Saxony-Anhalt 2,8
Hamburg 2.6
Bremen 2.6
Lower Saxony 2.6
Baden-Württemberg 2.5
Berlin 2.5
North Rhine-Westphalia 2.4
Thuringia 2.4
Hesse 2.3
Rhineland-Palatinate 2.2
Mecklenburg-Western Pomerania 1.8
Saxony 1.8
Brandenburg 1.8
Schleswig-Holstein 1.6
Germany 2.4
Old States 2.5
New States 2.2
Source: Invest in Bavaria
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