- 26. März 2020
The southern German economy is hit particularly hard by CoronaAs Federal States with high export volumes, Bavaria and Baden-Württemberg are particularly affected by the ramifications of the Corona virus. The industry in Bavaria contributes 27 percent to the Bavarian gross domestic product and is therefore a key sector in the Federal State. The most important commodities exported in southern Germany are vehicles, electrotechnology and machinery. International supply chains also include intermediate products, which are the industry’s Achilles’ heel. 60 percent of German mechanical engineering companies already feel that the supply chains have been affected by the Corona virus. The primary products from China and Italy are particularly affected.
Whether Porsche, Mercedes, BMW, Audi or commercial vehicle manufacturers such as MAN Truck and Bus. The automobile manufacturers are also struggling with the Corona crisis. In Bavaria alone, there are around 400,000 jobs in this sector. In Baden-Württemberg there are around 500,00 jobs in this sector.
Sothern Germany is traditionally connected to the Port of Hamburg by rail. Freight trains continue to run on schedule but are however underutilised. 530,000 TEU (Twenty-foot Equivalent Unit) are moved by rail between Bavaria and Hamburg annually. The total volume is 700,000 TEU. In Baden-Württemberg, 250,000 TEU of 300,000 TEU go to and from Hamburg by rail.
One industry that could benefit from this crisis in the long-term is the IT sector. Solutions from this sector are particularly in demand, when work must increasingly be done virtually – e.g. through home-office. Especially companies such as Infineon, Microsoft, Siemens and a few others in the greater area of Munich could benefit from it.
Bengt van BeuningenEmail+49 40 37709 102