Munich Annual Economic Report 2019
Newly published: Abridged version in English
(Oct 8, 2019) The latest report covers the key facts and figures about Munich as a business location.
The Annual Economic Report outlines the past year's most important events and developments in the Munich economy, focusing on the labor market, the development of industry sectors, public finance, the property market and relationships between the city and the surrounding region.
An abridged (21-page) version of the report is now also available in English.
How is Munich doing?
Key indicators and data in the current Annual Economic Report:
- Munich’s Gross Domestic Product (GDP) has increased by over 20 percent in the last 5 years. In the same period, Bavaria’s GDP grew by 15 percent, Germany’s by 13.6 percent.
- The GDP per person employed represents labor productivity. In 2016 the figure for Munich stood at EUR 100,766—31 percent above the Bavarian and 40 percent above the German national average.
- At EUR 32,856 per capita, Munich’s purchasing power is 39 percent higher than the national average. This impressive purchasing power is reflected in Munich’s surrounding region: the Starnberg rural district and the Munich rural district occupy first and second place on the list.
- Employment hit a new peak in 2018. 23,700 new jobs were created in Munich alone in the last year. Accordingly, unemployment in Munich fell to an annual average of 3.5 percent—the lowest figure in 20 years.
- The largest number of new jobs were created in the service sector (+ 3.0 percent). The Information and Communications (ICT) sector once again saw a significant increase, with 7.5 percent more socially insured jobs. Corporate services also showed impressive growth of 4.7 percent.
Innovation, Research and Science
The latest rankings again confirmed Munich’s position and competitiveness as a pioneering digital technology hub. Notable achievements include Munich being named the leading “digital region in Germany” by IW Consult and Germany’s top tech-hub by Deloitte.
Munich has become a key location for artificial intelligence (AI) in Germany. The presence of IBM Watson and Google Germany’s development center are just two factors driving the process forward. In addition, according to findings by UnternehmerTUM, 20 percent of all German AI start-ups are based in Munich. AI is a key research area of the Free State of Bavaria, which plans to create a competence network, as well as in numerous AI-focused research institutions at the Technical University of Munich and the Helmholtz Association.