Bayern is able to maintain its economic lead when compared to other German regions. This is according to a new study by the Institute of German Economy (IW), which was reported by “Der Spiegel”. However, not all southern German regions can keep pace. According to IW researcher Hanno Kempermann, Baden-Württemberg is falling behind in the decades-long race for Germany’s economic crown. While Bavaria is well-positioned due to its sectors in aerospace, medical technology, and services, Baden-Württemberg, Kempermann noted, is “struggling much more across the board with the crisis in the automotive, mechanical engineering, and metal products industries”.
This difference is particularly evident when viewing the regional rankings over a long period. If compared to 2016, Baden-Württemberg now has only 19 regions in the Top 100, down from 30 at that time. In contrast, Bavaria has been able to increase its dominance, now representing 58 regions compared to 53.
Kempermann, alongside Vanessa Hünnemeyer and Johannes Ewald, examined the economic status and prospects of all 400 districts and independent cities in Germany. To determine if a region is successful, the researchers assessed 14 indicators across three areas: economic structure, job market, and quality of life. In their evaluation, they assigned more weight to factors like municipal tax strength than to, for example, the presence of natural areas. Other factors researched included aging populations, doctor density, female employment rates, and private over-indebtedness.
Among the leading regions are not only Bavarian areas-especially the Munich metropolitan area-but also the Rhine-Main area, given its financial hub in Frankfurt. According to the IW, the strong job market and a robust economy were key advantages for the latter. On the other hand, among the weakest regions are several cities in the Ruhr area, as well as the Thuringian city of Suhl.
In a second part of the ranking, which examines the dynamic economic progress of these regions, the research team noted significant advances in previously weaker towns. For instance, the Brandenburg city of Cottbus is benefiting from a maintenance facility run by Deutsche Bahn, as well as the development of the University of Medicine in Lusatia. Neumünster in Schleswig-Holstein, conversely, has seen a sharp decrease in the number of registered crimes. The researchers concluded that innovation ecosystems-those linking regional science, industry, and start-ups-provide an advantage.