Bavaria is considered to be a very economically strong and wealthy state; it has developed from an agricultural to a technology location in recent decades. The gross domestic product in 2014 was 522 billion euros; the gross domestic product per capita in 2014 was 39,691 euros; Bavaria's share of Germany's economic output was 18.0 percent. The economically strongest region is Greater Munich with automotive industry (BMW, Audi, MAN, Knorr-Bremse), IT sector (Siemens, Nokia Networks, Infineon, Microsoft, Nemetschek SE), media and publishing (ProSiebenSat.1 Media, Vodafone Kabel Deutschland, Hubert Burda Media), defense industry (Airbus, Krauss-Maffei), tourism (museums, Oktoberfest, congresses, trade fairs). Other important business locations in southern Bavaria are Augsburg (Airbus, Fujitsu Technology Solutions, MAN, KUKA, UPM-Kymmene, Verlagsgruppe Weltbild), Ingolstadt (Audi, MediaMarktSaturn Retail Group) and the Bavarian chemical triangle between Lake Chiemsee, Inn and Salzach.
The greater Nuremberg area with industrial companies (Siemens, Leistritz Group, Dehn, Schmitt + Sohn), sporting goods manufacturers (Adidas, Puma, uvex), toy producers (Playmobil, Simba-Dickie-Group, Trix), stationery manufacturers (Faber-Castell, Lyra, Staedtler, Schwan-Stabilo), automotive industry (Leoni, MAN, Schaeffler), defense companies (Diehl, RUAG Ammotec), service providers (DATEV, Ergo Direkt, GfK, Nürnberger Versicherung), printers and publishers (Olympia-Verlag, Tessloff Verlag, Verlag Nürnberger Presse) and tourism (museums, Christkindlesmarkt, congresses, trade fairs) is another important business location.
In addition, the area between Aschaffenburg and Würzburg/Schweinfurt in northern Bavaria can boast very good economic data, such as unemployment averaging less than six percent and a flourishing economy. The same applies to Regensburg (Continental Automotive, Maschinenfabrik Reinhausen, BMW, Siemens, Infineon, Osram Opto Semiconductors), which has been growing in economic strength for years. Another economic region is Hochfranken. Nexans, Dennree, Scherdel and Netzsch are represented there. In August 2018, the Bavarian Minister of Economic Affairs, Franz Josef Pschierer, proposed the Hof region for Tesla's headquarters in Germany.
Some border regions are dependent on subsidies due to competitive advantages in neighboring countries on the one hand and a lack of infrastructure on the other. During the Cold War, the Bavarian Forest in particular was not very attractive as a location due to its remote location in the border region. Although the Iron Curtain to the CSFR fell there after 1990, at the same time zone border subsidies were abolished in reunified Germany, and at the same time the neighboring Czech Republic - an EU member as of 2004 - often offered better investment incentives.
Bavaria recorded economic growth of 4.0 percent in 2006. This figure was roughly in line with the national average in 2006. After an interim decline in growth in 2008 (+0.8 percent) and the fall into recession in 2009 (-2.4 percent) as a result of the global financial crisis, the Bavarian economy recovered and was already able to record economic growth of 5.5 percent again in 2010. In 2011, it reached 6.6 percent, in 2012 2.6 percent, in 2013 2.7 percent and in 2014 growth rose to 3.5 percent.
Family businesses are very important in Bavaria. In the ranking of the 1,000 largest companies of this type, Bavaria ranks second in the federal state comparison (after North Rhine-Westphalia) with 193 companies. The largest companies with significant entrepreneurial ownership are BMW, Schaeffler and Knauf.
In comparison with the gross domestic product of the European Union, expressed in purchasing power standards, Bavaria achieved an index of 151 in 2014 (Upper Bavaria: 186; EU-28: 100; Germany: 131; Hamburg: 215). The unemployment rate was 3.6% (May 2021); thus, Bavaria has the lowest unemployment rate in Germany. The highest unemployment rate in Bavaria is in Schweinfurt.
Bavaria - especially the Nuremberg area - has repeatedly had to accept plant closures and the relocation of jobs. In the mid-1980s, the decline of the office machine manufacturer Triumph-Adler began; Grundig AG dissolved in 2003. From 2005 to 2007, the AEG parent plant was closed and relocated abroad. Quelle GmbH, formerly the world's largest mail-order company, went into insolvency in June 2009 and was dissolved from October of that year.
Internationally important trade fairs are located in Munich and Nuremberg.
| Most important locations of employment subject to social insurance contributions |
| City (place of work) | socially insur. Employees30 . June 2019 | Change in percent since June 30, 2015 | Commuter balanceJune 30 , 2019 | Job density12 |
| Munich, state capital | 897.140 | +12,55 | +212.085 | 877 |
| Nuremberg | 314.648 | +8,6 | +91.148 | 914 |
| Augsburg | 147.489 | +7,03 | +23.935 | 735 |
| Regensburg | 125.582 | +10,89 | +59.991 | 1.165 |
| Ingolstadt | 107.531 | +7,69 | +44.507 | 1.163 |
| Würzburg | 92.172 | +8,29 | +39.171 | 1.040 |
| Erlangen | 91.977 | +3,26 | +43.447 | 1.183 |
| Bamberg | 54.478 | +4,25 | +24.945 | 1.031 |
| Schweinfurt | 53.899 | +0,48 | +33.190 | 1.612 |
| Fürth | 48.770 | +8,2 | −8.556 | 559 |
1 Jobs subject to social security contributions per 1,000 inhabitants of working age 15 to under 65; figures as of December 31, 2019, according to the update of the population status pursuant to the Population Statistics Act based on the 2011 census.
| Development of the unemployment rate |
| Year | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
| Unemployment rate in % | 5,5 | 5,3 | 6,0 | 6,9 | 6,9 | 7,8 | 6,8 | 5,3 | 4,2 | 4,8 | 4,5 | 3,8 | 3,7 | 3,8 | 3,8 | 3,6 | 3,5 | 3,2 | 2,9 | 2,8 |
See also: Export Award Bavaria
Tourism
Tourism is considered a "lead economy" due to its high contribution to the Bavarian economy. For example, the gross turnover of the tourism industry in 2016 was almost 24 billion euros, with day trips accounting for the largest share of this at 63 percent. The lodging industry plays a major role in Bavaria, with 13,400 lodging establishments with at least nine beds and 548,000 guest beds. This means that about one in four German lodging establishments is located in Bavaria. After Mecklenburg-Western Pomerania, Bavaria was the second most popular domestic German vacation destination in 2014 (measured by trips lasting five days or more). In 2018, tourism in Bavaria set its eighth consecutive record for arrivals and overnight stays, with 39.1 million arrivals and 98.7 million overnight stays. Bavaria was the most popular destination for foreign guests in Germany in 2018.
Besides Munich, the regions around the Bavarian lakes and in the Alps, the culturally and historically important cities of Nuremberg (with the historic mile, Reichsparteitagsgelände and its museums), Augsburg (with the Fuggerei, city wall, Renaissance buildings) and Regensburg (with the historic old town as a UNESCO World Heritage Site since 2007) are particularly strong in terms of tourism. With 38.0 million overnight stays, Upper Bavaria occupies a top position among the administrative districts; the second strongest destination is Bavarian Swabia with 15.5 million. Since the beginning of 2000, the official marketing company of the Bavarian tourism and leisure industry has been Bayern Tourismus Marketing GmbH (Munich). The claim is: "Bavaria - traditionally different".
See also: List of tourism regions in Bavaria
Energy
Consumption
Primary energy consumption in the country has been fairly constant, standing at 578.2 billion kWh in 2010, up from 556.8 billion kWh in 2009 and 566.6 billion kWh in 2008. This can be attributed to rising energy productivity, i.e., improved economic productivity relative to the energy used. This has increased almost consistently since 1995, which is taken as the base year. The years 2008 and 2009 fall short of the best value in 2007.
The largest energy consumers in 2010 were private households, which accounted for 29 percent of final energy consumption. Industry and transport required an equal 28 percent of final energy, only slightly less than households. The trade, commerce and services sector was somewhat behind, accounting for a total of 15 percent of final energy consumption.
Energy supplier
In 2013, Bavaria was home to around 420 energy suppliers operating in one or more areas: Approximately 350 of these utilities are involved in the supply of electricity, about 100 operate in the area of heating and cooling supply, and about 140 deal with the natural gas segment.
Electricity mix
Nuclear energy accounts for the largest share of net electricity generation at 48.7 percent. Renewable energies follow in second place with 29.2 percent. Both shares are thus above average compared to the national average (18 and 21 percent, respectively). Conventional gases contribute 15.5 percent to net electricity generation - this share is close to the national average (14 percent). Electricity generation from coal-fired power plants is relatively insignificant, accounting for 4.1 percent (the national average for lignite and hard coal as a whole is 42 percent). Mineral oils have an even smaller share at 2.6 percent, and are used less frequently on average nationwide (heating oil, pumped storage and others here total 5 percent) (as of 2011 in each case).
Nuclear energy
Nuclear power plants are located at two sites in Bavaria (Isar NPP and Gundremmingen NPP), and a research reactor is also operated in Garching near Munich (FRM II). In 2015, a study by the German Institute for Economic Research (DIW) found that the nuclear phase-out does not jeopardize security of supply in Bavaria and Germany.
Renewable energies
Renewable energies contributed 36.2 % to gross electricity generation in 2014. The high share of renewable energies in net electricity generation is based primarily on the significant share of hydropower, which has already been used for decades: Its share in electricity generation from renewable energies is 35.3 percent. The second most important renewable energy supplier is now photovoltaics with 35.2 percent of the total share of renewable energies, which was strongly expanded with in the context of the energy turnaround. Electricity generation from biomass had a share of 25.4 percent. The use of wind energy continues to be rather insignificant - the contribution amounts to 5.6 percent of renewable electricity generation (as of 2014 in each case). In 2012, Bavaria ranked second after Brandenburg in the "Renewable Energies" comparison of German states. According to the Bavarian Energy Concept (2011), renewable energies are to achieve a share of 20 percent of final energy consumption and 50 percent of electricity consumption by 2021.
According to this energy concept, wind energy was to cover approx. 6 to 10 percent of electricity demand by 2025, which corresponds roughly to the construction of 1000 to 1500 additional wind turbines. In contradiction to this target, significantly stricter restrictive distance regulations were introduced in 2014 in the form of the 10-H regulation, and one year later the wind energy expansion target was reduced to 5 to 6 percent of electricity demand. As a result, the number of building permits collapsed from 336 in 2014 to 25 in 2015. With a total height of 200 m, only 0.05% of the state's land area is theoretically available for wind energy use; taking into account that only some sites also have sufficient wind, only 0.01%. By mid-2018, 1159 wind turbines with a total capacity of 2510 MW had been installed.
See also: List of wind power plants in Bavaria
Media
Bavaria is home to several major media companies, especially in the state capital Munich. The city, or rather the surrounding area of Munich, is home to public service media such as Bayerischer Rundfunk and the program management of the ARD joint program Das Erste and the ZDF regional studio in Bavaria, as well as private TV and radio providers such as Antenne Bayern, ProSiebenSat.1 Media, Sport1 and Sky Deutschland. Furthermore, Munich is home to around 250 resident publishing houses and major newspapers such as the Süddeutsche Zeitung (SZ). Nuremberg is one of the biggest publishing locations in Germany; for example, the nationwide sports magazine Kicker published by the Nuremberg Olympia publishing house and the Nürnberger Nachrichten, one of Germany's biggest daily newspapers with a circulation of around 300,000 copies, are published there.
See also: Bavarian Local Broadcasting Association
BayernWLAN
The Free State of Bavaria had set itself the goal of being equipped with a tightly meshed network of around 20 thousand free BayernWLAN hotspots by the end of 2020. Today, more than 23 thousand hotspots are already in operation. BayernWLAN recorded around 9.3 million users per month in 2019. This makes the Free State No. 1 among the Flächenländer in Germany. Since April 2018, there has also been a support program for WLAN in public transport buses. The Free State provides four hotspots to municipalities free of charge.
Traffic
International traffic
In international road and rail traffic, the connections from Germany to Austria and beyond to Italy and southeastern Europe are of outstanding importance. Examples include the connections from Nuremberg via Regensburg and Passau to Linz, the connections from Würzburg or Nuremberg and Munich via Rosenheim to Salzburg and Innsbruck, and the connection from Munich via Lindau to Bregenz and Zurich. On the other hand, the traffic connections to the neighboring Czech Republic are far from being of comparable relevance; only the federal highway 6 was realized after the political change in the Czech Republic. In particular, the rail connections to the Czech Republic are still not very efficient. Electrification has not yet been implemented on any connection leading to the Czech Republic. Before the Second World War, the Czechoslovak city of Cheb (Eger) was home to a railroad junction that was used by means of corridor connections in German domestic traffic. From its existence until the end of the Second World War, it was under Bavarian and German railroad administrations, respectively. During the Cold War, the connection from Nuremberg via Cheb to Prague had a comparatively important significance. Today, there are only connecting regional trains from Nuremberg via Cheb and Furth im Wald, while there is a direct connection from Munich via Regensburg (change of direction), Schwandorf (change of direction again) and Furth im Wald to Prague with the Alex. For the future, electrification of the connection is planned as part of the Danube-Moldova Railway project. For long-distance traffic from Nuremberg to Prague, Deutsche Bahn offers long-distance buses.
Roads
The A 3, A 6, A 7, A 8, A 9 and A 70 freeways, as well as the A 71 freeway, which was completed in the fall of 2005, and the A 73 freeway, which was completed in August 2008, both connect Bavaria with Thuringia. There are connections to the state of Hesse via the A 3, the A 7 and a small section of the A 45, while the A 72 provides access to the Free State of Saxony. Star-shaped from Munich, the A 95 leads to Garmisch-Partenkirchen, the A 96 via Memmingen to Lindau, the A 93 via Regensburg to Hof, the A 92 via Landshut to Deggendorf and the A 94 in sections to Passau. The A 952 branches off from the A 95 as a connection to Lake Starnberg. To the south, a section of the A 93 connects the A 8 with the Brenner autobahn. The A 94 from Munich via Altötting to Passau has been planned since the 1970s but has only been completed in sections to date due to disputes over the routing. In addition, a large number of federal highways run through Bavaria. The Munich Ring is made up of the A 99 freeway with the Eschenrieder Spange (also known as the A 99a) and the A 995. These are supplemented by state, district and municipal roads.
Bavaria is thus well developed in terms of road traffic. Nevertheless, with 344 projects on federal highways and federal roads, 18.5 percent of the applications for the 2030 Federal Transport Infrastructure Plan come from Bavaria.
Bavaria received increased investment from federal funds from the CSU-led Federal Ministry of Transport in the period from 2009 to 2018. Measured in terms of infrastructure and population, this was a disproportionately large amount of money, especially for trunk roads. From 2014 to 2019, for example, Bavaria rehabilitated 243 bridges out of a total of around 4700, while North Rhine-Westphalia rehabilitated 100 out of almost 4400. 2 billion euros were invested in trunk roads in Bavaria, and 1.4 billion euros in NRW, the most populous state. Bavaria also received the highest allocation of funds over the entire period, with the largest increase in funding. Thus, from 2011 to 2018, Bavaria (or, by comparison, NRW) completed kilometers of newly built road: Freeways 13 km (24 km); Federal Roads 120 km (0 km).
In the south, moreover, Bavaria is often used as a shortcut in inner-Austrian traffic, since due to the geographical conditions the way through the Alps is by far longer than from Innsbruck via the A 8 or from Lofer via the B 21 or B 305 to Salzburg ("Großes" or "Kleines Deutsches Eck", respectively).
Rail, air and sea transport
Bavaria has a dense rail network with numerous stations. Munich and Nuremberg central stations are two of the largest in Germany and represent important hubs in trans-European traffic. The cities of Munich and Nuremberg have subways and commuter trains with a wide catchment area.
One of the largest European hubs for air traffic is Munich Airport "Franz Josef Strauß". In addition to the international airport Nuremberg "Albrecht Dürer", there is also the airport Memmingen and numerous commercial airfields. In 2018, a fuel spill occurred four times over Bavaria. A total of 107 tons of kerosene were dumped.
Most inland shipping takes place on the Danube, the Main and the Main-Danube Canal. There are numerous freight ports for this purpose.
See also: List of abandoned railroad lines in Bavaria, List of SPNV lines in Bavaria and List of passenger stations in Bavaria.