In 2016, Frankfurt am Main, within its city limits, generated a gross domestic product (GDP) of 66.917 billion euros, ranking fourth among German cities by economic output and holding a 24.8 percent share of Hesse's total economic output. GDP per capita in the same year was 91,099 euros per capita (Hesse: 43,496 euros, Germany 38,180 euros). Frankfurt is thus the fifth richest independent city in Germany and the richest among the larger cities. The GDP per working person is 97,178 euros. There are approximately 688,600 employed persons in the city in 2016. The unemployment rate was 4.9 percent in December 2018, slightly above the average for Hesse of 4.1 percent. Frankfurt is the center of the Rhine-Main metropolitan region, which is one of the most economically powerful regions in the country and generates a GDP of more than 250 billion euros.
According to a 2001 ranking by the University of Liverpool, Frankfurt can be considered the most productive city in Europe (by gross domestic product per capita) (ahead of Karlsruhe, Paris and Munich). Today, the city is one of the richest and most efficient metropolises in Europe. This is also reflected in the high number of international business representations. In an annual study (European Cities Monitor, 2010) by Cushman & Wakefield, Frankfurt has held third place as the best location for international corporations in Europe (after London and Paris) for over 20 years. For the state of Hesse, Frankfurt is of central importance; 40 percent of the 4.24 billion euros in trade tax revenue in Hesse comes from Frankfurt.
In a ranking of the world's most important financial centers, Frankfurt ranked tenth in 2018.
Work in Frankfurt
Frankfurt is the city with the highest job density and the most commuters in Germany, with 699,600 people in employment (2017), including around 622,000 employees subject to social insurance contributions (2017). The number of daily commuters was 362,450 in 2017, while the number of outbound commuters was 95,074. The number of people in employment has been growing for years, increasing by more than 55,000 since 2010. Between 2000 and 2005, the number of employees subject to social insurance contributions fell from 495,000 to 463,000; since then, it has risen steadily.
More than 81,000 people work for around 500 companies at Frankfurt Airport, making it the largest local workplace in Germany. The largest single economic sector is the provision of financial and insurance services, which employs around 75,600 people. The strongest absolute growth can be seen in the sectors of transport and warehousing and professional, scientific and technical services.
The median gross pay of full-time employees subject to social security contributions in Frankfurt was €4,182 in 2017, around €1,200 higher than in 2000. There are significant differences between the individual sectors: while the median gross pay in the hospitality industry and simple services is €2,340, a full-time employee in the IT sector earns €5,350 and in the financial sector €6,080 per month. The high average income of full-time employees contrasts with 46,367 exclusively marginally employed and around 22,108 unemployed. The unemployment rate is 5.6 %. In 2005, the number of unemployed was still 35,637 (10.6 percent).
The city's high economic power is reflected in the coffers of surrounding cities and communities in the Speckgürtel, mainly in the Vordertaunus, which benefit from above-average tax payments by their commuters earning in Frankfurt, which is why two of Germany's five richest districts are located here, namely the Hochtaunuskreis with Bad Homburg vor der Höhe as the district capital and the Main-Taunus-Kreis with Hofheim am Taunus as the district capital.
Quality of life
A citizen survey conducted by the City of Frankfurt in December 2010 revealed that 66 percent of all Frankfurt citizens were "generally satisfied" or "very satisfied" with the city, while only six percent said they were "dissatisfied" with the city. Since 1993, the proportion of satisfied residents has risen by 22 percent, while the proportion of dissatisfied residents has fallen by eight percent. 84 percent of Frankfurt residents "like" living in their city, while 13 percent would "rather live somewhere else." Satisfaction with public safety in Frankfurt was 37 percent (1993: only nine percent), while 22 percent were dissatisfied (1993: 64 percent).
Crime
→ Main article: Frankfurt am Main Police Headquarters
Among all German cities with more than 200,000 inhabitants, the highest number of crimes per inhabitant was recorded in Frankfurt over many years. In 2013, this frequency figure was 16,292 offenses per 100,000 inhabitants. Because the city regularly ranked at the top of the crime statistics, it was sometimes referred to in the media as the "Capital of Crime" and "Germany's Most Dangerous Place." According to the police crime statistics published on April 24, 2017, Frankfurt ranked fourth for the first time in 2016, with 15,671 offenses per 100,000 inhabitants, behind Berlin, Leipzig and Hanover.
The Frankfurt police headquarters warned against using the frequency figure of all crimes for a comparison with other major cities, as the statistics only include the crimes known to the police and processed by them. The police pointed out that due to the highest commuter balance in Germany, around 260,000 additional people spend time in the city every day. In addition, there are visitors and tourists, around 1.5 to 2.5 million trade fair visitors and around 53 million airline passengers a year who also stay in the city area. Around six percent of all criminal offenses are registered at the airport, including cargo theft, passport offenses, and violations of immigration regulations and air traffic laws. The high number of offenses detected in Frankfurt is a result of the high control density in the city area, he said.
In their own publications on crime statistics, the municipal authorities and bodies also sought a different interpretation. In a differentiated analysis according to offense groups, Frankfurt was thus only at the top of the statistics for narcotics offenses and for residence offenses, and in the top group for fraud, simple theft and transport fraud. Credit card and account fraud is registered at the banks' headquarters, regardless of the actual location of the crime. The high number of narcotics offenses and fare evasion cases detected (around 6.7 percent of all cases registered in Germany) was a result of intensive controls at the airport and at traffic hubs in the city center. In terms of security-related crimes (violent offenses such as murder and manslaughter, rape and sexual assault, robbery and assault), Frankfurt ranked in the middle of the statistics.
A study conducted by the University of Greifswald in April 2011 on "Subjective Perceptions of Safety among the Population of Frankfurt am Main" found that 84 percent of citizens surveyed felt "safe" or "very safe" from crime during the day; at night, the figure was 71 percent.
Resident companies
Hardly any other German city is home to so many internationally leading companies from a wide range of industries, including chemical groups, advertising agencies, software companies and call centers. The headquarters of the Board of Management's Passenger Transport division with DB Regio AG as well as DB Fernverkehr AG, Group Development and other important departments of Deutsche Bahn AG and the subsidiary DB Netz AG are located in the DB headquarters in the Gallus district. For several decades after the Second World War, the fur trading center around Niddastrasse was the main trading center for furs and fur clothing in Germany and was one of the three most important markets in the industry worldwide. With a turnover of 536 million, the 356 German smoke trade and fur confection businesses located here contributed nearly 10 percent of the city's national product. At the time, 65 percent of all fur goods freely traded worldwide took some form of route through Frankfurt am Main. For years, Frankfurt was considered the "pharmacy of the world" by Hoechst AG. Industriepark Höchst is one of the three largest chemical and pharmaceutical industry sites in Europe. Frankfurt is also home to the German headquarters of major food companies such as Nestlé and Ferrero, as well as the headquarters of Germany's largest brewery group, the Radeberger Group. KPMG, one of the four largest auditing companies, has its European headquarters in Frankfurt. PricewaterhouseCoopers has its German headquarters in Frankfurt, Deloitte Touche Tohmatsu has a branch office and Ernst & Young has a branch office beyond the city limits in Eschborn. Some of the largest management consultancies and international law firms are also represented in Frankfurt.
Financial sector
→ Main article: Financial center Frankfurt am Main
Frankfurt am Main is the seat of the European Central Bank and the German Bundesbank. The city is a major financial center and stock exchange and, according to various rankings, is one of the world's most important financial centers. For example, the GaWC (Globalization and World Cities Research Network) classified Frankfurt as the only German city as an "alpha world city" due to its economic importance. This puts Frankfurt in the third category of world cities, along with 16 others.
Frankfurt is home to the four largest German banks, Deutsche Bank, Commerzbank, KfW and DZ Bank (as of 2015). Deutsche Bank and Commerzbank operate as universal banks and maintain branches worldwide. KfW's main task is to promote SMEs and start-ups, while DZ Bank is a central institution of the cooperative financial sector. As subsidiaries of DZ Bank, Union Investment, DVB Bank and Reisebank are also based in Frankfurt, and Frankfurter Volksbank, Germany's second-largest Volksbank, also has its headquarters here.
Among the public-sector credit institutions, Landesbank Hessen-Thüringen (Helaba), DekaBank, Landwirtschaftliche Rentenbank and Frankfurter Sparkasse are also headquartered in Frankfurt.
Germany's largest direct bank, ING-DiBa, is also based in Frankfurt. In addition, several major private banks have their headquarters or German headquarters in Frankfurt, such as SEB AG, Bankhaus Metzler, Hauck & Aufhäuser, Delbrück Bethmann Maffei, BHF-Bank and Corealcredit Bank. From the group of sustainability banks, Triodos Bank is represented with its German branch and GLS Gemeinschaftsbank with a branch in Frankfurt.
At the end of 2010, 154 foreign banks also had their German headquarters in Frankfurt, and a further 40 had an office there.
With the Frankfurt Stock Exchange and XETRA trading platforms operated by Deutsche Börse AG, Frankfurt is the second largest stock market in Europe and handles the lion's share of German securities trading. In addition, the German headquarters of the three major rating agencies Standard & Poor's, Moody's and Fitch Ratings are located in Frankfurt.
According to a study by Comdirect, the city ranked joint third with Hamburg among Germany's fintech locations in 2017, behind Berlin and Munich. At the end of 2017, there were 84 fintech startups in Frankfurt. Due to high rents and competition for qualified young talent, Frankfurt is considered a difficult place for fintechs, he said. Fintechs based in Frankfurt include the digital insurance provider Clark and the digital asset manager Moneyfarm.
Frankfurt's financial center also includes the supervisory bodies based here. From 1950 to 2000, the Federal Audit Office had its headquarters in Frankfurt. Today, the Federal Financial Supervisory Authority (BaFin), the Federal Agency for Financial Market Stabilization (FMSA) and two bodies of the European System of Financial Supervisors, the European Insurance and Occupational Pensions Authority (EIOPA) and the European Systemic Risk Board, which carries out early identification, prevention and combating of systemic risks within the financial market of the European Union, reside here. Since the end of 2014, there has also been a Single Supervisory Mechanism for the 150 largest banks in the euro zone.
Construction and real estate industry
According to the "Construction and Real Estate Industry" study by the Frankfurt am Main Chamber of Industry and Commerce, there were 14,589 companies in the construction and real estate industry in its district in 2012. In Frankfurt alone, there were 31,265 employees in this industry. In 1999, the industry still employed over 36,000 people. The largest companies include DTZ Zadelhoff, Jones LangLaSalle, BNP Paribas Real Estate, Bilfinger Berger, Hochtief, Porr Deutschland, Techem, Nassauische Heimstätte, ABG Frankfurt Holding, Wayss & Freytag, Wisag, Ed. Züblin and Albert Speer & Partner. Sales in the construction and real estate industry amounted to over 8 billion euros in 2011. Since 2002, it has increased by 7.8 percent.
Retail
The 600-meter-long Zeil in the city center is the best-known and highest-turnover shopping street in Frankfurt. With up to 13,120 passers-by per hour, it was the busiest of 170 German shopping streets for the first time in 2012. The Zeil took second place in a nationwide comparison of rents for retail space in 2009. A store owner paid up to 265 euros per square meter here. In February 2009, the new MyZeil shopping center opened in the Palaisquartier.
While the stores located on the Zeil are in the low to medium price category, nearby Goethestraße is known for its luxury brands. Compared with other so-called luxury miles such as Düsseldorf's Königsallee, it ranked a distant fifth in 2012 with 1,520 passers-by per hour. Other important retail locations in Frankfurt include the Nordwestzentrum in Nordweststadt, one of Germany's largest shopping centers, the Hessen-Center in the Bergen-Enkheim district, and the Main-Taunus-Zentrum in Sulzbach (Taunus), which is located on the city border.
There are also various shopping streets in the city's districts, such as Berger Strasse in Nordend and Bornheim, Schweizer Strasse in Sachsenhausen, Leipziger Strasse in Bockenheim, Königsteiner Strasse in Höchst and Oeder Weg, which extends from the city center into Nordend.
Another retail location is Skyline Plaza, which opened in August 2013. A shopping and convention center built on the site of the former main freight station in the Europaviertel district, Skyline Plaza offers space for 180 stores.
Automobile manufacturer
Frankfurt is home to numerous German and European headquarters of foreign automotive groups such as Fiat Chrysler Automobiles (with Fiat, Alfa Romeo and Jeep), Honda and Kia. In addition to Opel in Rüsselsheim am Main, Jaguar also has its headquarters in Schwalbach am Taunus just outside the city. Škoda and Seat have their German headquarters in Weiterstadt, about 30 kilometers away. The Japanese manufacturer Mazda operates a design center in Oberursel (Taunus). Hyundai's European sales headquarters are in Offenbacham Main.
In addition, the supplier industry is also strongly represented. From the former Frankfurt companies TEVES and VDO, Continental AG maintains production, administration and development sites in Frankfurt, Eschborn, Schwalbach am Taunus, Karben, Babenhausen (Hesse) and Friedberg (Hesse). The automotive manufacturers and suppliers in the region have joined forces in the Automotive Cluster Rhein Main Neckar.
IT and telecommunications companies
Frankfurt is home to numerous companies in the IT and telecommunications industry. These include large group-linked companies such as T-Systems, Finanz Informatik, DB Systel, Fujitsu and Lufthansa Systems. The telecommunications service providers Colt and Level 3 as well as the telecommunications equipment supplier Avaya have their German headquarters here. Central registration for Germany-related domain names is handled by DENIC, which is based in Frankfurt. The International Network Management Center (INMC) at the Europaturm coordinates and secures the operation of Deutsche Telekom's global voice and data network. The companies Deck13, Keen Games and Crytek are renowned developers of computer games, and Konami Europe is also based here. Nintendo of Europe, the European headquarters of the world's largest video game developer, Nintendo, is also located in Frankfurt with the majority of its departments; in April 2015, the headquarters were relocated here from Großostheim in Lower Franconia, which is not far away. The Games Academy, which specializes in training game developers, has had a branch in Frankfurt since 2007.
A particularly high concentration of IT companies can be found in former industrial areas along Hanauer Landstrasse, Mainzer Landstrasse and Gutleutstrasse. In the greater Frankfurt area, IT companies can be found primarily in Bad Homburg vor der Höhe, Eschborn, Kronberg im Taunus, Langen (Hesse), Neu-Isenburg and Schwalbach am Taunus. Frankfurt is part of the Rhine-Main-Neckar IT cluster.
Frankfurt is home to the so-called DE-CIX, the world's largest Internet hub in terms of data traffic. That is why a large number of data centers are also located in the city.
Associations
Associations such as the German Chemical Industry Association (VCI), the German Electrical and Electronic Manufacturers' Association (ZVEI), the Association of the Photographic Industry, the German Engineering Federation (VDMA), the Association for Electrical, Electronic & Information Technologies (VDE) with its associated Electrotechnical Standards Commission (DKE in DIN and VDE), the German Chefs' Association, the German Design Council, the Federal Association of the German Mail Order Industry and the German Institute for Internal Auditing (DIIR) also settled in Frankfurt. The German Association of the Automotive Industry (VDA) was headquartered in Frankfurt from 1946 to 2010 and hosted the International Motor Show (IAA) here every two years until 2019. In addition, the Börsenverein des Deutschen Buchhandels (German Publishers and Booksellers Association), which organizes the Frankfurt Book Fair, has its headquarters in Frankfurt. DECHEMA Gesellschaft für Chemische Technik und Biotechnologie e. V. a non-profit scientific and technical society, awards numerous scientific prizes and organizes Achema, the world's largest trade fair for chemical engineering, environmental protection and biotechnology, every three years together with Messe Frankfurt.
Unions
The headquarters of the trade unions IG Metall, IG Bauen-Agrar-Umwelt and the Gewerkschaft Erziehung und Wissenschaft (GEW), which belong to the German Trade Union Confederation (DGB), are located in Frankfurt. There is also the headquarters of the German Locomotive Drivers' Union (Gewerkschaft Deutscher Lokomotivführer) in Frankfurt.
Fair
→ Main article: Messe Frankfurt
Trade fairs have been held in Frankfurt am Main since the Middle Ages. In 1240, Emperor Frederick II granted the city the privilege of a trade fair, under the protection of which the annual autumn fair developed into a hub for long-distance European trade. In 1330, the spring fair was added. Frankfurt was connected to Leipzig, the second major trade fair location in the Holy Roman Empire of the German Nation, by a long-distance road, the Via Regia. After a period of decline since the 18th century, the city was able to resume its old trade fair tradition after the Second World War.
Messe Frankfurt is the venue for the Frankfurt Book Fair, Achema and Ambiente, among others. The most traditional trade fair, called Tendence for some years, has lost much of its importance in recent years. From 1951 to 2019, the International Motor Show was held here.
Recent economic development
Every year, a study group of economists examines the world's most important business centers on behalf of Mastercard. Frankfurt am Main came in seventh place in 2007, far ahead of all other German locations, as these are more national than global in orientation. The importance of globalization for the city's economic development is also reflected in the extensive structural change that Frankfurt's economy has undergone in recent decades.
From 1988, five, and between 1990 and 1996 as many as six, of the 30 DAX companies were based in Frankfurt, including three banks (Commerzbank AG, Deutsche Bank AG, Dresdner Bank AG) and three industrial groups (Degussa AG, Hoechst AG and Metallgesellschaft). By mid-2007, Frankfurt was home to only three DAX-listed corporations, two banks (Commerzbank and Deutsche Bank) and one service company (Deutsche Börse). In the 1980s, structural change initially affected the metal and electrical industries, which had traditionally been very strong in Frankfurt. Companies such as Hartmann & Braun, Vereinigte Deutsche Metallwerke, Demag, Naxos-Union, Adlerwerke, Tenovis and VDO closed their Frankfurt plants or relocated their headquarters, mostly following mergers or takeovers. AEG, formerly Germany's second-largest electronics group, was taken over by Daimler-Benz in 1982 after a settlement and liquidated in 1996 after years of economic decline. Degussa moved its headquarters to Düsseldorf in 2001 and is now part of the Essen-based Evonik Group. Metallgesellschaft changed its name to GEA Group in 2005 and moved to Bochum.
Although Frankfurt is one of the largest locations for the chemical and pharmaceutical industry in Europe, none of the major corporations is headquartered in Frankfurt anymore. In the 1970s and 1980s, Hoechst AG was at times the world's largest chemical and pharmaceutical company by sales. In 1997, it split into several companies that today belong to international groups such as Bayer, Celanese, Clariant and Sanofi. More than EUR 350 million is invested annually in Industriepark Höchst, one of Europe's three largest chemical sites, which employs some 22,000 people. Ticona's new production facility in Höchst opened on September 26, 2011. Its relocation had become necessary because the former plant was in the way of the expansion of Frankfurt Airport. Fraport had acquired the former Ticona plant site in Kelsterbach for a sum of 650 million euros.
Cassella AG in Fechenheim, once one of the largest manufacturers of dyes and a subsidiary of Hoechst, fell to Clariant in 1997 when Hoechst was split up. The former Cassella plant on the Mainkur continues to exist as the headquarters of Allessa GmbH. The company's name contains an ananym of Cassella. Another large medium-sized pharmaceutical company in Frankfurt is Merz Pharma.
Deutsche Bahn moved its corporate headquarters to Berlin for political reasons as a result of reunification in 2000. Group Development and other central departments as well as the subsidiaries DB Netz and DB Systel remain based in Frankfurt.
Until the 1990s, Frankfurt's high trade tax, high office rents and high land prices led companies to relocate to the Speckgürtel, just outside the city. For example, Deutsche Bank built its new data center in Eschborn in the 1990s, and BHF-Bank built its data center in Offenbach in 1997. In the meantime, however, it can be observed that companies give greater weight to the image advantage than the lower business tax rates; Mattel moved its German headquarters back to the city.
According to the latest business survey by the Frankfurt am Main Chamber of Industry and Commerce, the economy in the CCI district continues to expect a positive development. The business climate index stood at 129 points in fall 2017. In the 2016 Future Atlas, the district-free city of Frankfurt am Main ranked tenth out of 402 districts and district-free cities in Germany, making it one of the regions with "top future opportunities" with particular strength in innovation and the labor market.
Purchasing power
Despite the structural change, Frankfurt maintained its position among major German cities in terms of gross domestic product per capita and employed persons in the years 2002 to 2007, as well as in terms of quality of life and attractiveness for new residents (as shown above). The decline of classic industries was compensated on the one hand by growth in the service sector, including companies such as Fraport and Deutsche Börse, and on the other hand by new settlements of the German or European headquarters of major foreign companies, for example in the automotive and IT industries. The city tries to avoid a one-sided focus on the financial sector and supports, for example, the expansion of Frankfurt as a research location for biotechnology. Frankfurt has therefore retained its strong position in criteria such as population growth, unemployment rate or gross domestic product per inhabitant and employed person. Disposable incomes are among the highest in Germany. Private purchasing power is even higher in the neighboring Hochtaunus district (index in 2020: 142.6) and in the Main-Taunus district (129.9). Nevertheless, Frankfurt has an above-average purchasing power index of the national average at 113.5 in 2020.
Tourism
Tourism is of significant and growing importance for Frankfurt. In 2015, Frankfurt counted more than 5.1 million visitors and almost 8.7 million overnight stays in 265 accommodation establishments. Almost 57 percent of overnight visitors came from Germany. This put the city in fourth place behind Berlin, Munich and Hamburg among the most popular city destinations in terms of overnight stays, in third place among foreign overnight visitors, and in first place in terms of travel from Asian countries. Since 1990, the number of beds in the accommodation sector has increased from 19,373 to 45,333, with the most overnight stays in September and October and the fewest in December and January. The average length of stay is 1.7 nights. Around 70 percent of overnight stays are business-related; for example, more than 1.7 million overnight stays were incurred in 2015 in connection with the 73,163 congresses and conferences held in Frankfurt.