2/21/2008

Bavaria’s Economics Minister takes positive stock of 2007 at Annual Economic Press Conference and sees upswing intact

Müller: “Full steam ahead towards full employment”

MUNICH At the Annual Economic Press Conference, the Bavarian Minister of Economic Affairs, Emilia Müller, took positive stock of the year 2007. “Bavaria has positioned itself as the engine spearheading the upswing in Germany. With growth of 2.9%, Bavaria was the star performer for growth in 2007. In the 10-year comparison, Bavaria is well ahead of all the other German states in terms of economic growth with nearly 30%,” underlined Müller. Its proactive economic policy is paying off in consistently higher growth.

The people were starting to feel the upswing, the Economics Minister said. Müller: “At the end of 2007, there were over 4.5 million employees in the national social security scheme in Bavaria, which is more than ever before. Unemployment was receding throughout Bavaria with rates ranging from 15 to 32 percent. This shows that growth creates jobs. In hardly any other state are jobs as secure and the prospect of finding a new job as good as in Bavaria.”

According to Müller, Bavaria would probably remain on a growth curve in 2008 as well. “Although economic momentum might slow down slightly in 2008, the upswing will continue in Bavaria. I think growth of up to 2.5% is realistic this year.” Employment levels would also carry on rising and in all probability the unemployment rate would fall below an annual average of 5%.

In the opinion of Müller, the upward trend would still be carried along by a flourishing export business: “All the signs point to a new export record of well over 150 billion euros at year-end.” The export share of industry was at nearly 50%. Because domestic investment activity had also increased, Bavarian industry surged ahead in 2007 with an overall plus in real added value of 6.8%. “Fortunately the downtrend in employment in industry ended in 2007. Our policy of always seeking to secure a strong industrial base is now paying off,” Müller commented.

The State Government actively supports the upturn in Bavaria. “We have put all our efforts into encouraging brisk investment activity in SMEs and craft enterprises as well as in structurally weaker regions with our SME loan program and the regional support programs. That also made a great contribution to bringing the upswing and jobs to rural areas and regions with a weaker infrastructure.” Bavarian economic policy will carry on focusing on continuity and progress in the future as well. 

Source: Invest in Bavaria