Economic Report Rhineland-Palatine (December 2013) 1. Rhineland-Palatine´s economy at a glance Economic Region: The German Palatinate (Pfalz) Important Facts and Figures In the Palatinate as a whole, production industries contribute about 42% of the gross value added (in figures, 14,401 million Euros). About 57% of the gross value added (19,582 million Euros) is generated by the services sector; here, the retailing branch, the hotel and restaurant and transport services account for 4,714 million Euros or about 15% of the gross value added, while the sector comprising financial, hire and corporate services yields 7,176 million Euros (about 25%). A high proportion of the industry located in the Palatinate is export oriented. The current export quota for the region is over 60% - a remarkable proportion when one considers that the comparable figures are about 50% for the entire state of Rhineland-Palatinate and around 44% for Germany as a whole. Production for export is particularly marked in the chemical industry. As already mentioned, the chemical industry - the most important branch of industry in the Palatinate - is inseparably linked with the name of the city of Ludwigshafen. Thus, as a result of the founding of BASF SE (i.e. Baden Aniline and Soda Factory) during the period of industrialization, the north section of the Rhine Plain in the conurbation around Ludwigshafen developed into what is now the largest single chemical plant in the world. In contrast, The Westpfalz sub-region, in which the cities Pirmasens and Zweibrücken are important centres, is characterized by medium-sized businesses and industries, e.g. shoemaking. The draw-down of American forces in Germany - many of which were based in and around Kaiserslautern - has left the city facing severe structural problems. Economic Report_ Rhineland-Palatine_December 2013 1 Rhineland-Palatine enjoys an outstanding position in many fields: Along with BASF SE, major producers in the area are BK Giulini as well as Raschig and Abbott. The establishment of a truck assembly plant of Mercedes-Benz (now Daimler) in Wörth moved vehicle manufacturing to the fore in this area. Other major industrial branches are vehicle manufacture and supplies, with the Daimler truck assembly plants in Wörth and Germersheim, the Opel factory Kaiserslautern, and a number of important auto suppliers such as Keiper Recaro, BorgWarner and Harman Becker. In the field of engineering and machine construction, the Palatinate is the preferred location of many major companies, including Europe's largest pump producer, KSB, and the manufacturer of printing machinery, König und Bauer-Albert (KBA); The region is home to the producer of mechanical pulping machinery, Gebrüder Pfeiffer AG, and the crane manufacturer, Terex Demag. In addition, metal production and the manufacture of metal products are of importance in the Palatinate. Economic Report_ Rhineland-Palatine_December 2013 2 2. Economic Data: Rhineland-Palatine RHINELAND-PALATINE GERMANY Population 12.6 Mio GDP / per Capita 38,300 $ 1) GDP (Feb 2013) 465.50 Billion € 605.15 Billion $ 80.5 Mio 2) (Census: 9/5/2011) 82. Mio 2) 3) (12/2012) 42,300 $ 2) (2012) 2,666 Billion € 3,500 Billion $ Unemployment (11/2013) 5.1 % 2) 6.5 % 2) Persons in employment (10/2013) 1.272.104 (31.3.2013) 3) 42,210 Million Import from Israel 148 Mio $ (1-12/2012) 1,099 Mio $ (1-6/2013) 202 Mio $ (1-12/2012) 2,110 Mio $ (1-12/2012) 2,280 Mio $ (1-6/2013) rate of registered unemployed Export to Israel 4,754 Mio $ (1-12/2012) 1) Exchange Rate: 1 € = 1.3 $ Source: DESTATIS Statistisches Bundesamt (Federal Statistical Office) 3) Statistisches Landesamt Rheinland-Pfalz, 2013 (Statistical Office Rhineland-Palatine) 2) Economic Report_ Rhineland-Palatine_December 2013 3 3. Foreign Trade Germany - Israel Foreign Trade Germany - Israel 2011 - 2013 Year Imports Exports Volume of Trade 2011 2012 1/2 2013 Mio. € 1,870.05 1,623.13 845.75 growth* 11% -13% -2% Mio. € 3,427.26 3,657.92 1,754.87 growth* 19% 7% -8% Mio. € 5,297.31 5,281.04 2,600.62 growth* 16% 0% -6% Source: Statistisches Bundesamt; Bayerisches Landesamt f. Statistik (=Federal Statistical Office, Bavarian State Office for statistics) Effective: September 2013 Economic Report_ Rhineland-Palatine_December 2013 4 4. Foreign Trade Rhineland-Palatine - Israel Foreign Trade Rhineland-Palatine - Israel 2010 - 2012 Year Imports Mio. € 2010 2011 2012 85.2 94.0 114.0 10.3% 21.2% 151.6 155.7 5.2% 2.7% growth* Exports Mio. € 144.1 growth* *compared to the same period of time of the previous year Source: Statistisches Bundesamt; (Federal Statistical Office) Effective: September 2013 5. Research & Development Expenditure in Rhineland-Palatine Expenditure for Research & Development 2011 in different business Sectors (in Million €) Government and Universities Enterprises Total NGO´s Rhineland-Palatine Germany 207 505 1 673 2 384 10 974 13 449 51 077 75 500 Source: Germany Trade & Invest Economic Report_ Rhineland-Palatine_December 2013 5
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