Helaba Research
REGIONAL FOCUS
11 November 2015
Facts & Figures:
Hesse and Thuringia – Federal States in Germany
AUTHOR
Barbara Bahadori
phone: +49 69/91 32-24 46
research@helaba.de
Germany is a federal state consisting of 16 Bundesländer (federal states). Of these, Hesse and
Thuringia are two states situated in the heart of Germany.
EDITOR
Dr. Stefan Mitropoulos
Hesse and Thuringia
in the middle of Germany
PUBLISHER
Dr. Gertrud R. Traud
Chief Economist/
Head of Research
Inhabitants (in million, December 2014)
Helaba
Landesbank
Hessen-Thüringen
MAIN TOWER
Neue Mainzer Str. 52-58
60311 Frankfurt am Main
phone: +49 69/91 32-20 24
fax: +49 69/91 32-22 44
SchleswigHolstein
2,8 m
Hesse is home to 7.5 % of Germany’s
population, and its residents generate
8.6 % of the country’s GDP. With that,
Hesse has a per capita GDP that is
15 % above the national average.
Hamburg
1,8 m
Brandenburg
2,5 m
Bremen
0,7 m
Lower
Saxony
7,8 m
SaxonyAnhalt
2,2 m
North RhineWestphalia
17,6 m
Hesse
6,1 m
With regard to productivity – GDP per
person in employment – Hesse is top
in Germany (not counting the city
states Berlin, Hamburg, Bremen) and
exceeds the national average by
11 %. At an average of 5.5 %, Hesse’s unemployment rate in January to
October 2015 was noticeably lower
than the national level of 6.5 %.
MecklenburgWest Pomerania
1,6 m
Thuringia
2,2 m
Berlin
3,5 m
Saxony
4,1 m
Thuringia, too, is a successful state.
However, an assessment needs to
take into account that Thuringia – like
all new states – started from a very
low level of economic performance
after reunification. By now, GDP per
capita (in percentage of the German
average) has more than doubled in
Thuringia and stands at 70 % of the
national average.
RhinelandPalatinate
4,0 m
Saarland
1,0 m
BadenWuerttemberg
10,7 m
Bavaria
12,7 m
Although the unemployment rate in
Thuringia, at an average rate of 7.5 %
in January to October 2015, was above the national average, it was still considerably lower than in
the other East German federal states.
Sources: Statistisches Bundesamt, Helaba Research
This publication was very
carefully
researched
and
prepared. However, it contains
analyses
and
forecasts
regarding current and future
market conditions that are for
informational purposes only.
The data is based on sources
that we consider reliable,
though we cannot assume any
responsibility for the sources
being accurate, complete, and
up-to-date. All statements in
this publication are for informational purposes. They must not
be taken as an offer or
recommendation for investment decisions.
Selected key figures
Area (km2)
Inhabitants (December 2014, mill.)
Germany
Hesse
Thuringia
357,340
21,115
16,173
81.2
6.1
2.2
GDP (nominal, billion €, 2014)
2,904
251
54
GDP per capita (€, 2014)
35,900
41,300
25,200
GDP per employee (€, 2014)
68,100
75,700
51,800
6.5
5.5
7.5
Unemployment rate (%, 2015, Jan.-Oct.)
Sources: Regional statistical offices, Bundesagentur für Arbeit, Helaba Research
HELABA RESEARCH · 11 NOVEMBER 2015 · © HELABA
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F ACT S & FIGURES: HES SE AND THURINGIA – F EDERAL ST AT ES IN GE RMANY
Hesse’s per capita GDP
50 % above the EU
average
These two federal states also hold up well in an international comparison. For example, Hesse’s
GDP is as large as Denmark’s, and the per capita output is 50 % higher than the EU average. At
86 %, Thuringia’s economic output per capita is still slightly below the EU average. However, compared with other successor states of the former Eastern Bloc such as Poland (40 %) and Czech
Republic (54 %), this is an excellent level.
Hesse’s GDP equal to Denmark’s,
Thuringia’s per capita GDP higher than Central/Eastern Europe
GDP (nominal, billion €, 2014)
450
GDP
GDP per capita (€)
50 000
GDP per capita
400
40 000
350
300
30 000
250
200
20 000
150
100
10 000
50
0
0
Sources: Eurostat, National accounts of the federal states, Helaba Research
Crucial to Hesse’s strong economic performance is the state’s special mix of sectors. No other
federal state can boast simultaneously an important financial center, an international airport, and a
highly-regarded international fair. This is also reflected in the statistical data: One third of gross
value added is generated in the economic sector “Financing, insurance, renting, business service
providers”. Another 22 % of the output comes from the sector “Trade, transport, tourism, telecommunication”.
Service-provider state Hesse, industrial Thuringia
Share of gross value added (2014)
Public and other services
22%
20%
Financing, insurance, renting,
business service providers
26%
33%
Trade, transport, tourism,
telecommunication
Construction
Total industry
(without construction sector)
Agriculture, forestry
20%
5%
22%
29%
21%
15%
7%
4%
26%
21%
Germany
Hesse
26%
Thuringia
Sources: National accounts of the federal states, Helaba Research
Sector mix in Hesse: financial center, airport, fair,
chemicals/pharma
The reason for the exceptional sector composition in Hesse is at first the financial centre Frankfurt.
196 domestic and foreign banks are headquartered in Frankfurt, which is 40 % of all supra-regional
financial institutions active in Germany (i.e. not counting savings banks and credit unions). Another
important factor for Hesse as a business location is Frankfurt Airport, which is used by 28 % of
passengers and 48 % of the cargo volume in German air traffic. It is unchallenged in the first place
in Germany and is the largest hub in continental Europe, with regard to transportation of goods and
the second largest with regard to passengers. The Frankfurt Fair is another asset that strengthens
the region’s international orientation. In terms of visitors and exhibitors, the Fair ranks first in Germany, with international exhibitors also appreciating the location.
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F ACT S & FIGURES: HES SE AND THURINGIA – F EDERAL ST AT ES IN GE RMANY
Large share of industry
in Thuringia
At 19 % of the gross value added, the industrial sector in Hesse plays a smaller role than in Thuringia, where it accounts for 22 %. Within industrial manufacturing, there are clear focal points in
Hesse: One quarter of industrial sales are generated in the sector chemical and pharmaceutical
products. Motor vehicles/other transport equipment and the metals sector generated 16 %, and
12 % respectively, of Hesse’s industrial sales. With that, three sectors account for 54 % of sales.
The structure of industry is more diversified in Thuringia. Thus, four sectors – food products and
beverages, basic metals and metal products, electric/electronic and optical products, motor vehicles and trailers – make up 58 % of Thuringia’s industrial sales in nearly equal shares.
Chemicals/pharma most important sector in Hesse
Diversified industrial structure in Thuringia
Share of industrial sales (January to August 2015)
Share of industrial sales (January to August 2015)
Motor vehicles
other transport
equipment
16%
Machinery,
Rubber/plastic
equipment
products
9%
9%
Wood/paper
6% Non metalic
Motor vehicles,
mineral products
trailers
4%
16%
Chemicals,
pharmazeutical products
4%
Electric/
Other
electronic/
9%
optical
products
15%
Food products,
beverages
Basic metals,
12%
metal products
16%
Electric/
Basic metals,
electronic/
metal products
optical
12%
products
9%
Machinery,
equipment
9%
Food products,
beverages
7%
Chemicals,
pharmazeutical
products
26%
Rubber/plastic
products
7%
Other
14%
Sources: Thüringer Landesamt für Statistik, Helaba Research
Sources: Hessisches Statistisches Landesamt, Helaba Research
The 25 largest
companies
The economic structure of the federal states is clearly reflected in the twenty-five largest enterpris1
es in Hesse and Thuringia, whereby our rankings were determined by a company’s workforce in
the respective state, and not by its importance in Germany as a whole or worldwide.
The 25 largest companies in Hesse
Rank
The 25 largest companies in Thuringia
Com pany
Sector
Com pany
Sector
1
Deutsche Lufthansa AG
Transportation
1
Edeka
Wholesale and retail trade
2
Rew e Group
Wholesale and retail trade
2
Deutsche Bahn AG
Transportation
3
Deutsche Bahn AG
Transportation
3
Deutsche Post AG
Transportation
4
Fraport Group
Transportation
4
Randstad Deutschland
Temporary employment company
5
Deutsche Post Group
Transportation
5
Bosch
Electric/electronic products
6
Commerzbank AG
Banking
6
Helios Kliniken GmbH
Hospitals
7
Deutsche Telekom AG
Telecommunications
7
Rew e Markt Region Ost
Wholesale and retail trade
8
Continental Group
Automotive supplier
8
Rhön-Klinikum
Hospitals
9
Volksw agen AG
Automotive industry
9
Zeitungsgruppe Thüringen
Publishing
10
Adam Opel AG
Automotive industry
10
SWE Stadtw erke Erfurt GmbH
Utility
11
Rhön-Klinikum AG
Hospitals
11
Carl Zeiss AG
Optical/electronic products
12
DZ Bank Gruppe
Banking
12
Deutsche Telekom AG
Telekommunication
13
Deutsche Bank AG
Banking
13
Opel Eisenach GmbH
Automotive industry
14
Merck KGaA
Chemicals, pharmazeut. products
14
Continental Gruppe
Automotive supplier
15
Metro Group
Wholesale and retail trade
15
E.ON Thüringer Energie AG
Utility
16
Sanofi Group
Chemicals, pharmazeut. products
16
GeAT
Temporary employment company
17
WISAG Facility Service Holding
Service to buildings
17
Jenoptik-Group
Optical/electronic products
18
B. Braun Melsungen AG
Pharmazeutical products,
medical engineering
18
Metro Group
Wholesale and retail trade
20
Procter & Gamble Germany
GmbH & Co. Operations oHG
Siemens AG
21
Rank
Chemicals
19
Electric/electronic products
20
ITT Industrie- und Transportschutz Thüringen GmbH
Bertelsmann
Helaba Group
Banking
21
Rege Motorenteile GmbH
Automotive supplier
22
Stadtw erke Frankfurt am Main
Utility, Transportation
22
Stadtw erke Jena
Utility
23
Bilfinger SE
Construction
23
August Storck KG
Food industry
24
Fresenius SE & Co. KGaA
24
Siemens
Electric/electronic products
25
Evonik Industries AG
25
K+S Kali GmbH
Exploitation of salt
19
Pharmazeutical products,
hospitals
Chemicals, utility, real estate
Security firm
Printing, call center
Sources: Helaba Research, Hessen Agentur, LEG Thüringen
1
The ranking for Hesse is based upon the employment of 2012, and for Thuringia on 2010. However, we know from experience that the
enterprises and their ranking change only slightly.
HELABA RESEARCH · 11 NOVEMBER 2015 · © HELABA
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F ACT S & FIGURES: HES SE AND THURINGIA – F EDERAL ST AT ES IN GE RMANY
The export rates of the industrial enterprises have risen remarkably over the last fifteen years in
both of the federal states. And Hesse, where foreign sales account for 53 % of total sales, is
above-average by German standards in 2015 (January to March). In Thuringia, too, the export
shares have improved to 34 %. The economic crisis saw a sharp slump in domestic and foreign
demand in 2008/2009, so that, in the end the export ratios declined slightly. German businesses,
and thus also those in Hesse and Thuringia, were able to profit particularly strongly from the global
economic recovery in 2010, as a result of which the export shares were surging again. After that
the export ratios maintained their high levels, owing to the strengthening of the domestic demand.
This year the export rations in Germany as a whole and in Thuringia are rising again whereas in
Hesse, they are slightly under the last year’s level.
Export ratios
on a high level
Export quotas on a high level
Most exports go to Europe
Share of foreign sales among total sales in %
Share of exports (January to June 2015)
55
Hesse
50
55
50
45
Germany
40
45
40
Thuringia
35
35
France
Netherlands
Italy
Austria
Spain
Belgium
Other Eurozone
UK
8%
6%
5%
5%
4%
4%
8%
8%
Other EU
10%
30
30
USA
13%
25
25
China
5%
20
20
Other Asia
12%
15
Other countries
Russia 1,5%
14%
15
99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15*
*Average January to August 2015
Sources: Statistisches Bundesamt, Helaba Research
7%
5%
6%
5%
Other Eurozone
13%
UK
Hungary
Czech Republic
Poland
Other EU
USA
China
Other Asien
7%
7%
5%
5%
5%
7%
6%
9%
Other Countries
14%
Russia 1,7%
Thuringia
Sources: Regional statistical offices, Helaba Research
The Euro Zone is the main target for exports in 2015: 36 % of Hessian and Thuringian exports
were sent there, with the neighbouring states and Italy among the top customers. Europe as a
whole received 65 % and 71 %, respectively, of the exports of Hesse and Thuringia. Asia was the
second-largest target region (share of exports: 16 % and 15 %, respectively), with China as the
chief importer. The US played an important role for the companies in Hesse, as it was the country
with the highest single share of exports. For Thuringia, by contrast, were the neighbours to the
East – Hungary, the Czech Republic and Poland – important customer countries for its products.
Main export target:
Europe
Germany 2015: economic growth on the same level
Stable labour markets
Real change in GDP compared to previous year in %
6
4
Hesse
France
Italy
Austria
Spain
Germany
Unemployment rate in % of labour force
Thuringia
2
0
6
20
4
18
2
16
0
Hesse
-2
-2
-4
-4
-6
-6
-8
-8
00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15
1st half-year
Sources: Statistisches Bundesamt, Helaba Research
14
12
10
8
6
4
Eastern Germany
20
18
16
Thuringia
Germany
Western G.
Hesse
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 *
14
12
10
8
6
4
*Average January to October 2015
Sources: Bundesagentur für Arbeit, Helaba Research
After the economic downturn in 2009, the German federal states of Hesse and Thuringia achieved
strong growth rates in the next two years that followed. After that the economy cooled down and
Hesse and Thuringia were more strongly affected. But in contrast to the development in Germany
as a whole, the braking effect wore off more quickly in Hesse and led to a recovery in 2013; in
Thuringia there was no improvement. The recovery in 2014 made positive growth rates in every
German federal state. Thuringia with 1.6 % reached the German average and Hesse was slightly
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F ACT S & FIGURES: HES SE AND THURINGIA – F EDERAL ST AT ES IN GE RMANY
GDP-growth 2014:
Germany 1.6 %
Rising employment
below with 1.4 %. The economic recovery continues in 2015, as the German growth rate of 1.4 %
in the first half-year shows. The development in Germany is mainly driven by domestic consumption, which is growing dynamically in particular due to higher real wage increases and the strong
immigration. The expansive monetary policy and the historically low interest rates should also
support the economy a little bit. The situation in many countries of the euro area is getting better,
whereas the global growth is quite weak. Therefore the investment in equipment is increasing only
slightly. So growth prospects remain for Hesse at the projected national average of 1.7 %. For
Thuringia less growth is expected, due to the weak first half of 2015; in the coming year, the gap
should narrow again.
On the Hessian and Thuringian labour markets, the high level of output of recent years is still
having an impact. The unemployment rate in Hesse stayed for four years on the same level. In
Thuringia, it is falling futhermore and getting closer to the national average. Besides capacity
utilization demographic factors play an important role in the improvement of the labour market especially in the eastern federal states of Germany. The stability in the labor market is also reflected in the positive employment trend which lasts for almost five years now. Not only domestic
workers found a new job, but companies could hire immigrant job seekers according to their
requirements.
Debt: Hesse about average, Thuringia slightly above average
783
Total
Saxony
Bavaria
Baden- Mecklenb.- Hesse
Wuertt. W. Pom.
Lower
Saxony
Branden- Thuringia
burg
9 533
9 142
8 170
7 783
7 339
7 254
6 826
6 788
5 870
4 286
1 991
6 778
14 100
Debt of federal states per capita in €, December 2014
North
Rhinel.- Saxony- Schlesw.Rhine- Palatinate Anhalt
Holstein
Westphalia
Saarland
Sources: Bundesfinanzministerium, Helaba Research
The economically strong federal states have noticeably higher tax revenues. For example, in Hesse the financial strength per capita is 22 % above the national average with regard to the income
and corporate tax. By contrast, Thuringia reaches only 53 % of the average. Since Germany is, on
the one hand, a federal state and, on the other hand, pays attention to the uniformity of living
standards, the VAT is distributed according to other criteria, as a result of which the financially
weak federal states catch up. The financial equalization between the federal states leads to a further equalization of revenue per capita, which is then boosted even more by the general federal
supplementary grants. Thus, the financial strength per capita in Hesse is only 2 % above average
after the redistribution, while Thuringia reaches 94 % of the average.
Hesse well positioned
because of
financial strength
The financial equalization system between the states and the guarantee of the federal states’ existence in the constitution have prompted the ratings agency Fitch to tie the ratings of the federal
states to that of Germany. Hesse and Thuringia, therefore, could get a Triple A-rating, if, as an
issuer, they themselves were rated by Fitch. Standard & Poor’s takes into account the economic
productivity and the debt situation of the various federal states and differentiates accordingly: Hesse receives an “AA” rating, because it has high tax revenues thanks to its economic strength,
whereas its per capita debt is not below the average as in Bavaria and Saxony (Thuringia is only
rated by Fitch). 
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