Bavaria, Saxony top German growth league

8th February 2005, Comments 0 comments

8 February 2005, BERLIN - The German states of Bavaria and Saxony recorded top economic growth last year with the nation's capital, Berlin, coming in with the worst economic data, an official report said on Tuesday. Bavaria, which is home to western Germany's flagship international companies such as Siemens, BMW and Allianz, had growth of 2.3 percent in 2004, the report said. Saxony, in economically depressed eastern Germany, also chalked up 2.3 percent growth last year. Pro-business policies in Saxony hav

8 February 2005

BERLIN - The German states of Bavaria and Saxony recorded top economic growth last year with the nation's capital, Berlin, coming in with the worst economic data, an official report said on Tuesday.

Bavaria, which is home to western Germany's flagship international companies such as Siemens, BMW and Allianz, had growth of 2.3 percent in 2004, the report said.

Saxony, in economically depressed eastern Germany, also chalked up 2.3 percent growth last year.

Pro-business policies in Saxony have attracted a host of major companies to build plants including the US chip manufacturer AMD, Porsche, Volkswagen and BMW.

Most recently, the international air freight and logistics company DHL - a subsidiary of Deutsche Post AG - announced plans to move its European hub from Brussels to Leipzig in Saxony. This is expected to create 10,000 new jobs.

Bavaria and Saxony have long been ruled by conservatives, with the Christian Social Union (CSU) in power in Bavaria for decades and the Christian Democratic Union (CDU) in charge of Saxony until last year when it was forced to take in Chancellor Gerhard Schroeder's Social Democrats (SPD) as junior coalition partner.

In contrast, Berlin posted the worst growth in Germany last year with sickly economic expansion of just 0.4 percent, said the report.

Berlin's city government is a leftist alliance of Schroeder's SPD with the former East German communists, the Party of Democratic Socialism (PDS).

Overall German GDP grew by 1.7 percent in 2004. The economy is projected to slow slightly to 1.6 percent expansion this year.

DPA

Subject: German news

 

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