Stability in economically challenging times
Economy in transition – Munich remains efficient.
Although Germany experienced economic stagnation in 2024, with an overall economic situation characterised by geopolitical uncertainties and structural challenges, Munich's economy has remained resilient. This is primarily because Munich is well positioned in future growth sectors and has a long-standing, highly diversified mix of industries and companies, which has contributed to the location's resilience and stability for many years. Munich can adapt.
A skills shortage remains a key challenge.
While the number of employees subject to social insurance contributions reached a new high of around 970,600, a slight further increase in unemployment to an average of 4.5% in 2024 can also be observed. Despite rising unemployment, the shortage of jobs and skilled workers remains structural.
Reducing bureaucratic obstacles to attracting workers and skilled employees from all backgrounds is a priority. Additionally, the Department of Labour and Economic Affairs will continue to implement programmes such as the Munich Employment and Qualification Programme (MBQ) to promote an independent and active municipal employment policy.
A look at selected sectors:
Information and communication technology; industry; tourism.
The analysis shows that Munich has developed into one of the leading locations in Germany and Europe for information and communication technology (ICT) over the last decade. The number of ICT sector employees has almost doubled since 2014. Despite the demands of the transformation, industry continues to be a key sector of Munich's economy, accounting for around a fifth of the location's value creation.
A combination of high-tech industry, a robust service sector, creative industry clusters, a thriving start-up and business creation scene, and an excellent marriage of science, research, innovation, and business ensures the city's resilience.
Not to mention tourism, which set a new visitor record in 2024 with almost 20 million overnight stays in Munich.
Municipal finances: High income – increasing investments
Trade tax revenue amounted to EUR 3.35 billion in 2024, which is a very high figure. This enables key investments in infrastructure, education, climate and social policy. However, due to the City of Munich's substantial investment expenditure, debt continues to rise significantly despite high tax revenues.
