From Agricultural to Industrial Economy
After the Second World War, Bavaria underwent a profound transformation from a predominantly agricultural region to an industrial and high-tech location of international standing. Today Bavaria has one of the strongest regional economies in Europe. With a GDP of 409.5 billion Euros in 2006, Bavaria outperformed 21 of the 27 member states of the European Union. Bavaria’s GDP per capita of 32,815 Euros is well above both the German and European averages. In 2006, Bavaria was the only German state to report a balanced budget. Bavaria’s unemployment rate of 4.5% ranks as the second lowest in Germany.
Modernization
Since 1994, following the principle of 'creating instead of owning’, the Bavarian government has reinvested 4.2 billion Euros of privatization revenues in the modernization of the economy, state and society through its programmes "Offensive Zukunft Bayern” and “High-Tech Initiative”. In this way, Bavaria has targeted and strengthened its competencies in the cross-cutting technologies of the future, such as information and communications technology, life sciences, new materials, mechatronics, energy and environmental technologies, as well as nanotechnology.
Cluster Policy
In 2005, the Bavarian government launched its Cluster Initiative, which identifies 19 key sectors and areas of expertise of the Bavarian economy. Under this initiative, the building of networks among companies, universities and research centres, as well as between service providers and investors, is strongly promoted.
Export Economy
Bavaria’s new export record of 150 billion Euros projected for 2007 and its export rate of almost 50% of products underscore the international competitiveness of the Bavarian economy. Since 1995, Bavarian exports have been promoted with the help of Bayern International, an organization of the Bavarian government whose mandate is to promote international trade.
20 offices around the world help Bavarian companies enter important markets and promote Bavaria as an attractive location to set up business.