Economic growth: Nuremberg still on the up
Thumbs up: Nuremberg was better positioned than ever at the turn of the year, thanks to the innovative strength of local entrepreneurs and the vision of local authorities and communities. Nuremberg, after all, is currently excelling in innovation, technological adaptability and attractive tourism, to the benefit of not just the economy, but the city’s inhabitants too. Quality of life to the max!
Nuremberg has made a success of structural change, moving away from its purely industrial past and reinventing itself as a pulsating centre for future-proof production, diverse service providers and innovative start-ups. This is no coincidence, as the city recognised early that times were changing and seized its opportunity.
Over recent years, for example, it has created a successful network of stakeholders from industry, the start-up scene and research. This was precisely what was needed, as it is innovation in IT and communication technology that now shapes the long-term success of manufacturing companies. And there is no shortage of such innovative spirit in Nuremberg.
Excellent results across the board
These and other measures are adding to Nuremberg’s growing attractiveness as a place to do business. Other key factors include the city's central location at the heart of Europe, its good transport infrastructure, medium levels of business tax compared with elsewhere in Germany, and many forms of support for new start-ups. A trend with positive consequences:
- Top economic performance: With a GDP of 28 billion euros, Nuremberg ranks in the top 10 of Germany’s twenty largest cities. Year-on-year economic growth is 4.4 percent, outstripping the national average.
- Record employment levels: Record year in 2018: There have never been more people in formal employment in Nuremberg. The number of people in work grew by 1.8 percent compared with the previous year. Meanwhile, unemployment is at a new all-time low.
- Constant population growth: Nuremberg’s population has grown by 4.4 percent over the past five years.
Clearly, these two factors are inter-related, with a large job market making the metropolitan region attractive to potential new residents. In turn, the expanding pool of skilled workers encourages businesses to base themselves in Nuremberg.
Services account for lion’s share of growth
While Nuremberg remains one of Germany’s main industrial locations, with 15 percent of all workers in the city employed in manufacturing, it is the service sector that now account for the lion’s share of growth. And there is another striking feature, namely that knowledge-intensive industry now accounts for 70 percent of all manufacturing in Nuremberg. This is a clear indicator of how Nuremberg has embraced the opportunities of radical change, such as digitalisation, establishing its status as a real high-tech location.
A good hunting ground for retailers
35 was the magic number for Nuremberg retailers in 2018. Average sales per head of the population were a full 35 percent higher than the German average. This excellent result was only bettered by Munich, the capital city of Bavaria. Total retail sales in Nuremberg are more than 30 percent higher than the purchasing power of the local population. This can be explained by the growing number of tourists and to visitors from the surrounding areas who travel to the Franconian capital for a shopping trip.
Positive news for all entrepreneurs: Despite the strong economic growth, business tax in Nuremberg still sits in the middle of the national league table. As well as many other benefits, a relocation incentive for new start-ups and businesses that are looking to relocate within Germany is certainly another key factor in Nuremberg's favour.