The “National Accounts of the States” working group chaired by President Dr. Anke Rigbers published preliminary economic data at the state level for 2020 that the price-adjusted gross domestic product (GDP) in Baden-Württemberg fell by 5.5% compared to the previous year. In nominal terms, ie at current prices, Baden-Württemberg’s gross domestic product – as a measure of the total goods and services produced here in this country – amounted to almost 501 billion euros in 2020. The weakening economic momentum thus had a more dampening effect here in Germany than in Germany as a whole. In Germany, price-adjusted GDP for 2020 as a whole fell by 4.9% compared to the previous year.
For comparison: Bavaria’s economy also contracted by 5.5% after adjustment for prices in 2020 and economic output in the other large states of Hesse and Lower Saxony also fell by 5.6 and 4.9% after adjustment for prices.
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Domestic industry and the service sectors were particularly hard hit by the economic downturn. Above all, the local industry, which accounts for almost a third of Baden-Württemberg’s economic output, proves to be the central growth engine in »good times«, which contributes significantly to a more favorable economic development in the state. However, the south-west industry remained without growth impulses overall in 2020 and recorded a decline in price-adjusted gross value added of 9.7% compared to the previous year (Germany: −10.5%).
Furthermore, the service areas were dominated by the ongoing corona-related lockdown, with a minus of the price-adjusted gross value added of 4.4% compared to 2019. The area of ”trade, transport, hospitality” also recorded a minus of 4.3%. In contrast, the »Financial and Insurance Services« division achieved a slight plus in price-adjusted gross value added of 0.1% compared to 2019. The construction industry also had a stabilizing effect in Baden-Württemberg with an increase in price-adjusted gross value added by 3.0% in 2020 compared to 2019.
In summary, it can be said that the economic performance of Baden-Württemberg has picked up a little more momentum than in the first half of 2020 (−7.7% compared to the same period in the previous year). Nonetheless, 2020 as a whole continued to be heavily impacted by the impact of ongoing pandemic response measures.
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