Hessen set for robust economic growth in 2024, outpacing national average

Landesbank Hessen-Thüringen forecasts a promising 1.5% growth in Hessen’s economy for 2024, citing the strength of the state’s special mix of industries.

© Brandy Willetts

Hessen is poised to experience above-average economic growth in 2024. According to a recent study by Landesbank Hessen-Thüringen, the state’s gross domestic product (GDP) is expected to rise by 1.5%, surpassing the national growth rate. This optimistic outlook is a testament to Hessen’s robust economic structure and ability to adapt and thrive even in challenging times.

The first half of the current year saw Hessen’s economy outperform the national average, a trend that will likely continue into 2024. The financial sector, bolstered by rising interest rates, is one of the key drivers of this growth. The upcoming European Football Championship is also anticipated to inject vitality into the travel and hospitality sectors, further fueling the state’s economic engine.

Hessen’s unique industrial mix continues to be a cornerstone of its economic strength. The study specified that no other federal state in Germany can simultaneously boast a significant financial center, an international airport, and a renowned trade fair location. The logistics sector was also highlighted. The Frankfurt Junction, where autobahns A3 and A5 meet, is one of Europe’s busiest intersections, and the Rhine and Main rivers are major waterways connecting the region to key seaports in the Netherlands.

The state’s industry contributes significantly to the economy, especially the manufacturing, chemical, pharmaceutical, metal, and automotive sectors. The export share is notably high at 53%. The share of exports in the chemical and pharmaceutical industries is 66%.

The trend in the labor market is also positive, with near-full employment.

This forecasted growth and below-average debt reinforce the state’s robust and dynamic position in Germany.