---
title: "Facts and Figures: The Federal State of Hesse"
url: https://www.helaba.com/en/facts-and-figures-federal-state-hesse
type: dd_research
language: en
updated: 2026-09-28
keywords: Länder & Regionen, Regional Focus
---

# Facts and Figures: The Federal State of Hesse

Helaba Research REGIONAL FOCUS HELABA RESEARCH · 7 AUGUST 20 18 · © H EL A B A 1 7 August 2018 This publication was very carefully researched and pre- pared. 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 purpos- es. They must not be taken as an offer or recommenda- tion for investment decisions. AUTHOR Barbara Bahadori phone: +49 69/91 32-24 46 research@helaba.de EDITOR Dr. Stefan Mitropoulos/ Anna Buschmann PUBLISHER Dr. Gertrud R. Traud Chief Economist/ Head of Research 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 Facts & Figures: The Federal State of Hesse The Federal Republic of Germany is a country with a federal structure that consists of 16 federal states. Hesse, which is situated in the middle of Germany, is one of them and has an area of just over 21,100 km2 making it a medium-sized federal state. Hesse in the middle of Germany Population in millions, 30 June 2017 Sources: Statistisches Bundesamt, Helaba Research At 6.2 million, the population of Hesse makes up 7.5 % of Germany’s total population. In addition, a large num- ber of workers commute into the state. As a place of work, Hesse offers in- teresting fields of activity for all qualifi- cation levels, for non-German inhabit- ants as well. Hence, the proportion of foreign employees, at 15 %, is signifi- cantly higher than the German aver- age of 11 %. Apart from its considerable appeal for immigrants, Hesse is also a sought- after location for foreign direct invest- ment. The per capita value of invest- ments by foreign companies in Hesse is almost 100 % above the average for Germany as a whole. Hesse is responsible for 8.6 % of Germany’s gross domestic product (GDP). Consequently, the federal state enjoys a higher-than-average economic strength: Hessian per capita GDP is 14 % above the German av- erage. In terms of productivity, that is to say GDP per worker, Hesse is also number one compared to other German states (ex- cluding the city states of Berlin, Hamburg and Bremen) and exceeds the German average by 10 %. The Hessian unemployment rate, which is an average of 4.7 % in 2018 (January to July), was considerably below the overall German level of 5.4 %. Selected figures Germany Hesse Area (in km2) 357,340 21,115 Population\* (in millions, June 2017) 82.7 6.2 GDP (nominal, EUR billions, 2017) 3,263 279 GDP per inhabitant (in EUR, 2017) 39,500 44,800 GDP per worker (in EUR, 2017) 73,700 81,300 Unemployment rate (in %, Ø Jan.- Jul. 2018) 5.4 4.7 Sources: Statistische Landesämter, Bundesagentur für Arbeit, Helaba Research Hesse 6.2 m Thuringia 2.2 m Schleswig- Holstein 2.9 m Mecklenburg- West Pomerania 1.6 m Hamburg 1.8 m Lower Saxony 8.0 m Bremen 0.7 m Brandenburg 2.5 m Berlin 3.6 m Saxony- Anhalt 2.2 m Saxony 4.1 m Bavaria 13.0 m Baden- Wuerttemberg 11.0 m North Rhine- Westphalia 17.9 m Rhineland- Palatinate 4.1 m Saarland 1.0 m FACTS & FIGURES: THE FEDERAL STATE OF HES SE HELABA RESEARCH ·7 AUGUST 20 18 · © H EL A B A 2 Hesse stands up well to international comparison, too. Hesse’s GDP, for example, is almost as high as Denmark’s. Per capita output in Hesse is 50 % above the average of all EU countries. Hesse’s GDP almost as high as Denmark’s Hesse: the service sector state GDP (nominal) in EUR billions, 2017 GDP (nominal) per capita in EUR Share of gross value added in %, 2017 Sources: Arbeitskreis VGR der Länder, Eurostat, Helaba Research Sources: Arbeitskreis VGR der Länder, Helaba Research The most important factor for Hesse’s high level of economic strength is, in particular, the sector mix: No other federal state is able to simultaneously boast of a significant financial centre, an inter- national airport and a well-known location for trade fairs. This is also reflected in statistical data: A third of Hessian gross value added is generated in the area of the economy of “financing, insur- ance, renting, business service providers”. The sector of “trade, transport, tourism, telecommunica- tion” contributes a further 23 % to output. The financial centre of Frankfurt is one reason for the extraordinary sector composition in Hesse: 203 domestic and foreign banks have their German head office in Frankfurt, which represents 44 % of all credit institutions in Germany operating on a supra-regional level (i.e. excluding savings banks and co-operative banks). Another reason is Frankfurt Airport, which is a key factor for the location and handles 27 % of the total passenger traffic and 45 % of the total volume of air freight in Germany. It is thus the undisputed leading airport in Germany, the second largest Continental European logistics hub for goods as well as the third-largest for passengers after Paris and Am- sterdam. Messe Frankfurt, Frankfurt’s trade fair, is yet another asset that strengthens the interna- tional focus of the region. In terms of visitors and exhibitors, the trade fair is in the vanguard of Germany´s fairs, whereby international exhibitors particularly appreciate its location. Chemicals/pharma biggest industrial sector in Hesse German industry: automotive important Hesse: Share of industrial revenues, 2017 Germany: Share of industrial revenues, 2017 Sources: Hessisches Stat. Landesamt, Helaba Research Sources: Statistisches Bundesamt, Helaba Research Manufacturing industry (excluding construction), with a share of 22 % of gross value added, plays a smaller role in Hesse than the overall German share of 26 %. Within the industrial production segment, there are significant focal areas in Hesse: A quarter of industrial revenues are generated by the segment of chemicals & pharmaceuticals. Motor vehicles/other transport equipment and the metals sector account for 17 % and 13 % of Hessian industrial revenues, respectively. Thus, three 0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 0 50 100 150 200 250 300 350 400 Austria Ireland Denmark Hesse Finland GDP GDP per capita 22% 26% 4% 5% 23% 21% 31% 26% 20% 22% Hesse Germany Construction Trade, transport, tourism, telecommunication Total industry (without construction sector) Financing, insurance, renting, business service providers Public and other services Agriculture, forestry Motor vehicles other transport equipment 17% Basic metals, metal products 13% Electric/ electronic/ optical products 9% Machinery, equipment 9% Food products, beverages 7% Rubber/plastic products 7% All others 15% Chemicals, pharmazeutical products 24% Chemicals, pharmazeutical products 11% Motor vehicles other transport equipment 24% Basic metals, metal products 11% Electric/ electronic/ optical products 10% Machinery, equipment 13% Food products, beverages 9% Rubber/plastic products 4% All others 18% Sector mix in Hesse: Financial centre, airport, trade fair, chemicals & pharmaceuticals FACTS & FIGURES: THE FEDERAL STATE OF HES SE HELABA RESEARCH ·7 AUGUST 20 18 · © H EL A B A 3 sectors are responsible for 54 % of revenues. The structure of German industry as a whole is con- centrated in a similar way, albeit with the automotive and mechanical engineering sectors dominat- ing. The economic structure of the federal state is clearly reflected in Hesse’s largest companies. The following ranking1, which we compiled ourselves, is based on a company’s total workforce in Hesse and is not measured by its German or global significance. Ranking of 25 largest companies in Hesse1 Sources: Helaba Research, Hessen Agentur The export ratios of industrial companies have risen strongly over the last twenty years. With a share of 56 % of foreign turnover as a proportion of total revenues in January to May 2018, Hesse achieved an export ratio that exceeded the German average. The economic crisis of 2008/2009 led to a slump in domestic and foreign demand, so that total export ratios declined slightly. German and, consequently, Hessian companies were able to benefit from the worldwide recovery in 2010 and export ratios rose again. As the domestic economy strengthened, export ratios initially re- mained largely constant. In 2015, the average export ratio of all German states saw another slight increase, but it fell back somewhat in Hesse due to the weaker development in some industrial branches. However, since 2016 the Hessian export ratio returned to growth above the average. Export ratios on a high level Exports primarily destined for Europe Foreign turnover as proportion of total revenues in % Share of exports, 2017 \*Average of January to May 2018 Sources: Statistisches Bundesamt, Helaba Research Sources: Statistisches Bundesamt, Helaba Research The euro area was the main destination for exports in 2017, accounting for 36 % of goods exported from Hesse, with neighboring countries and Italy being the most important markets. Two-thirds of Hessian exports were destined for Europe as a whole. Asia was the second-biggest destination (with a 16 % share of exports), with China as the primary importer. As the country with the largest 1 For Hesse, the ranking is based on data of 2012. Experience shows, that there are only minor changes in companies and ranking positions. 1 Deutsche Lufthansa AG Transportation 2 Rewe Group Wholesale and retail trade 3 Deutsche Bahn AG Transportation 4 Fraport Konzern Transportation 5 Deutsche Post Gruppe Transportation 6 Commerzbank AG Banking 7 Deutsche Telekom AG Telecommunications 8 Continental Konzern Automotive supplier 9 Volkswagen AG Automotive industry 10 Adam Opel AG Automotive industry 11 Rhön-Klinikum AG Hospitals 12 DZ Bank Gruppe Banking 13 Deutsche Bank AG Banking 14 Merck KGaA Chemicals, pharmazeut. products Rank Company Sector 15 Metro Group Wholesale and retail trade 16 Sanofi Group Chemicals, pharmazeut. products 17 WISAG Facility Service Holding Service to buildings 18 B. Braun Melsungen AG Pharmazeutical products, medical engineering 19 Procter & Gamble Germany GmbH & Co. Operations oHG Chemicals 20 Siemens AG Electric/electronic products 21 Helaba Konzern Banking 22 Stadtwerke Frankfurt am Main Utility, Transportation 23 Bilfinger SE Construction 24 Fresenius SE & Co. KGaA Pharmazeutical products, hospitals 25 Evonik Industries AG Chemicals, utility, real estate Rank Company Sector 30 35 40 45 50 55 60 30 35 40 45 50 55 60 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18\* Hesse Germany 16% 10% 7% 9% 10% 5% 7% 8% 3% 5% 5% 7% 8% Germany France Italy Netherlands Belgium Austria Other Eurozone UK Other EU USA China Other Asia Other countries Poland The 25 largest companies High export ratios Main destination for exports: Europe 14% 10% 6% 11% 6% 7% 5% 8% 4% 4% 4% 5% 7% 8% France Italy Netherlands Belgium Austria Other Eurozone UK Other EU USA China Other Asia Other countries Hesse Spain Poland FACTS & FIGURES: THE FEDERAL STATE OF HES SE HELABA RESEARCH ·7 AUGUST 20 18 · © H EL A B A 4 single share of Hessian exports, the United States played an important role for companies in Hes- se, with the pharmaceutical industry responsible for the majority of goods shipped here. Its share of exports to the US amounted to 37 %. The sectors of electrical engineering/optics/electrical equipment, chemicals, machinery and metals followed far behind (12 %, 11 %, 11 % and 9 %). With a proportion of 4 %, exports of motor vehicles and automotive parts were not one of the main business areas. In this respect, Hesse would only be partially affected by the protectionist trade policy of the United States, even if customs duties on automobiles were raised. Nevertheless, the US President Donald Trump’s impetuous utterances and the ensuing discus- sions are leading to uncertainty regarding the profitability of old and new production sites around the world. This is likely to put a dampener on demand for capital goods that will place an additional burden on German industry on top of the slowdown in euro area economic growth. This means that it will probably no longer be possible to see a repeat of GDP growth (not calendar adjusted) in Hesse over the last two years of 2.2 % (2017) and 2.3 % (2016). However, it is likely that domestic demand will continue to support economic growth, as Germany is still registering real wage in- creases of around 2 %. The outlook for GDP growth in 2018 is likely to be more or less limited to the average level forecast for Germany of around 2 %. This is what data for the current year is pointing towards. Three years of economic growth Improvement of labour market continues Real change in GDP yoy in % Unemployment rates in % of total workforce \*Forecast Sources: Statistisches Bundesamt, Helaba Research \*Average of January to July 2018 Sources: Bundesagentur für Arbeit, Helaba Research The overall high output level of recent years is continuing to have an effect on the Hessian labour market. Since 2014 the unemployment rate in Hesse is declining and with a rate of 4.6 % in July 2018 it is in the area of full employment (4 % to 5 %). Furthermore, the stability of the labour mar- ket is reflected in the employment trend of jobs subject to social insurance contributions, which has been almost constantly positive for the last eight years. In this respect, local employees are not the only ones who are able to find a new job, but companies are also able to fill vacancies, according to their requirements, with migrant jobseekers as well. The economically strong federal states generate considerably higher tax revenues. In this regard, the per capita financial strength of Hesse is 25 % above the German average in terms of both income and corporation taxes. Since, on the one hand, Germany is a federal country and, on the other, is concerned about ensuring the uniformity of living conditions, value added tax is distributed according to other criteria, so that financially weak federal states are able to catch up. The ensuing fiscal equalisation system between federal states leads to a further harmonisation of per capita income, which is additionally boosted by general supplementary federal grants. As a consequence, per capita financial strength in Hesse is only 2 % above the German average after these redistribu- tive measures. -8 -6 -4 -2 0 2 4 6 -8 -6 -4 -2 0 2 4 6 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 Germanny Hesse \* 4 5 6 7 8 9 10 11 12 4 5 6 7 8 9 10 11 12 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18\* Germany Hesse West Germany Rising employment FACTS & FIGURES: THE FEDERAL STATE OF HES SE HELABA RESEARCH ·7 AUGUST 20 18 · © H EL A B A 5 Public debt: Hesse slightly above average Public debt of federal states per inhabitant in EUR, December 2017 Sources: Bundesfinanzministerium, Helaba Research The closely intertwined system of fiscal harmonisation between the federal states as well as the constitutional guarantee of existence for the federal states prompts the rating agency Fitch to cou- ple the ratings of German states to that of the Federal Republic of Germany. Thus, in principle Hesse could receive a “AAA” rating if it had an active rating relationship to Fitch as an issuer. Standard & Poor’s cites the economic performance as well as debt situation and differentiates accordingly, with Hesse receiving a “AA+” rating (Outlook: stable). This is because, although the state displays high tax revenues thanks to its strong economic fundamentals, in terms of per capita debt it is above the German average, in contrast to Bavaria and Saxony.  6 340 381 1 315 3 441 4 872 6 050 6 625 7 101 7 191 7 666 7 763 8 925 9 263 13 850 Total Saxony Bavaria Baden- Wuertt. Mecklenb.- W. Pom. Branden- burg Hesse Thuringia Lower Saxony Rhinel.- Palatinate North Rhine- Westphalia Schlesw.- Holstein Saxony- Anhalt Saar- land Hesse with good rating thanks to high level of financial strength

Per capita output is 50 % above the average of all EU countries. Is Hesse affected by the US protectionism? What are the growth prospects?