Munich Annual Economic Report 2018
Newly published: Abridged version in English
(Oct 8, 2018) 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?
Josef Schmid, Deputy Mayor and Head of the Department of Labor and Economic Development, presented the Annual Economic Report for the City of Munich on June 26, 2018.
Schmid explained: “Munich's economic data are distinctly impressive: Last year, the city once again experienced extremely positive economic development, and its above-average performance is abundantly clear in all areas. What is especially important to me is the way Munich's economic potency combines with innovation capabilities in specific areas to drive an above-average increase in employment in forward-looking industries, for example. This development is laying the foundation for Munich's continued prosperity going forward.”
Key indicators and data in the current Annual Economic Report:
- According to current calculations by the Bavarian Office of Statistics and Data Processing, gross domestic product (GDP) stood at EUR 104.2 billion in 2015, a year-on-year increase of 4.3 percent.
Munich's GDP has increased by nearly 20 percent over the past five years. In the same period, Bavaria's GDP grew by 14 percent and that of Germany by 12.2 percent.
GDP per gainfully employed person reflects labor productivity: This figure stood at EUR 98,041 in 2015 – 30 percent above the Bavarian average and 39 percent higher than the national average.
- Munich has for years boasted by far the highest purchasing power of any large German city. In 2017, the city's purchasing power rose 4 percent year on year and is currently 40 percent higher than the national average, at EUR 32,139 per capita. By comparison, the figure in Düsseldorf is 19 percent higher than the national average, while that of Hamburg and Frankfurt/Main is 11 percent above the national average.
In the past 40 years, the Munich labor market has never experienced a phase of continuous strong growth in employment as prolonged as the one which currently remains unbroken since 2007. In both absolute and relative terms, the 3.3 percent gain recorded in 2017 was exceptionally vigorous. At the same time, the unemployment rate dropped to the lowest level in 20 years (3.9 percent for the Munich district of the Federal Employment Agency).
The most distinctive features of Munich's economy are its diverse structure, its potent performance and its ability to change and renew itself.
Areas of action for local government
Local government is accompanying and helping to shape the technological and digital transformation with a view to keeping both its urban society and the local economy healthy and prosperous. The Department of Labor and Economic Development is engaged in a large number of projects that contribute to sustainable development within the framework of municipal economic policy. The projects address smart cities, mobility, the Munich Urban Colab (a new incubator and innovation center), support for entrepreneurship and the startup community, efforts to strengthen and develop the city's creative industries, and intelligent instruments to raise the density and promote the reuse of commercial space.