Munich is doing well — and according to a study, it will probably stay that way. The Bavarian capital is anew the city in Germany with the best future prospects.
Munich leads the fifth sustainability ranking conducted by the Hamburg Institute of International Economics (HWWI) and the private bank Berenberg. Of the thirty German cities examined, the study attests to Munich's greatest economic performance, leading location factors, and optimal demographic development. HWWI Director Prof. Dr. Henning Vöpel says:
“In this way, the Bavarian capital is strengthening its competitive position as an outstanding knowledge metropolis compared to other cities against the backdrop of above-average economic prospects for the future.”
At 31.4 million, the proportion of employees with technical or university degrees is higher here than in any other city. Almost every second employee (48.5 million) works in a knowledge-intensive sector. The number of employed persons increased by the second largest percentage among cities between 2011 and 2014 (+6.2 million). Munich is also well positioned in terms of internationality. The proportion of foreign employees is the highest at 18.4 million. The outlook for the Bavarian capital is excellent: the highest relative population growth (+16 million) and the highest absolute growth in the labor force (+31,500) are expected by 2030. The population of people under 20, in particular, is growing above average.
"Since skilled workers can become a decisive bottleneck in the competition to attract knowledge-intensive companies, a city's future competitiveness will increasingly be determined by the development of its working-age population. Munich is very well positioned, not least due to its high proportion of highly qualified workers and knowledge-intensive industries."
Only in terms of school leavers with higher education entrance qualifications and average accessibility does Munich rank second to last, or in the lower middle range, respectively.
Following Munich are Leipzig, Frankfurt, Dresden, and Berlin. Gelsenkirchen ranks 30th and last. The cities are examined in terms of their current economic performance, their future demographic development, and key location factors such as education, innovation, internationality, and accessibility.
The success of cities and rural areas is linked
Berenberg spokesman Dr. Hans-Walter Peters stresses the importance of location competition for cities:
“Their success also depends on how the economic structural change towards knowledge-intensive service sectors and research-intensive industries can be achieved.”
The future prospects of cities do not only affect their own population, says Peters:
"The dynamic development of major cities is important for a region's prosperity. Their success therefore contributes decisively to our country's competitiveness."
But there is also an influence the other way around, says Vöpel:
“Regional metropolitan areas increase exchange, division of labor, and specialization in the knowledge economy, which has a positive impact on the development of cities.”
