Upper Bavaria: economic engine for Europe with a GDP of 350 billion euros!

Upper Bavaria: economic engine for Europe with a GDP of 350 billion euros!

In recent years, Upper Bavaria has established itself as an economic powerhouse that is of central importance not only for Bavaria but for the whole of Europe. According to the vbw – Association of the Bavarian Economy e. V. the gross domestic product (GDP) of the region is estimated to be over 350 billion euros in 2024. This means that Upper Bavaria exceeds the economic performance of countries such as the Czech Republic, Portugal and Finland. An impressive achievement for a region that had more than 2.3 million people in employment subject to social security contributions last year.

But companies in Upper Bavaria face challenges that should not be underestimated. High taxes and bureaucracy put a strain on companies that are longing for some relief. “There is something going on,” notes Bertram Brossardt, managing director of vbw, who is committed to improving the economic framework. The vbw is organizing a business talk series with Manfred Weber to promote exchange between the Bavarian regions and Europe and to highlight the solutions needed.

Economic impulses and challenges

The Upper Bavarian economy acts as an important source of inspiration for Bavaria, Germany and Europe. The vbw supports the EU's path to strengthening European competitiveness and calls for trade barriers in the European internal market to be reduced so that the region's economic potential can be better exploited. Open markets are of central importance for the export-oriented industry. Manfred Weber has reinforced these demands and points out that free trade agreements, such as with Mercosur, should be ratified quickly.

National accounts (NA) are an important tool for understanding the economic situation in the region. They offer a quantitative overall picture of economic growth and consumer and investment activities. This data is essential for politics, business and science in order to analyze the differences in economic development not only between the federal states, but also at the district level. The regional national accounts show that the GDP reflects the overall economic performance in a certain period and thus provides valuable insights into the income situation of the population.

Prosperity and income in the region

The primary income (PEK) that residents generate from the production process allows conclusions to be drawn about the prosperity of the population. The disposable income of private households (VEK) results from primary income after deduction of current transfers such as taxes and social contributions. In this context, the vbw expresses concern about the need to take differences in regional prices into account in order to enable a fair comparison of prosperity.

The ongoing revisions of the national accounts also provide insight into new data and methods. These are comprehensively revised every five years, with the next general revision expected to take place in 2029. The dynamic developments in the internal market, particularly in the services sector, must also be taken into account in order to secure the region's long-term competitiveness.

Upper Bavaria has the opportunity to master the challenges of the future through strategic decisions and the right dialogue. The vbw and its actors are ready to pave the way forward - step by step and with a clear view of the needs of companies and the people in the region.