Hesse boasts a strong economy that is well above the German average. Hesse’s GDP per capita exceeds the national average by a remarkable 12.4 %. A decisive factor for this positive development is the financial centre of Frankfurt.
Once again, Helaba’s analysis makes it clear that Frankfurt plays a key role in the financial world as the location of the European Central Bank and the Bundesbank. Several major commercial banks and management consultancies further contribute to this status. Frankfurt’s significance as a financial centre will be further underlined by the upcoming opening of the new EU Anti-Money Laundering Authority (AMLA) at the beginning of 2025.
This concentration of important institutions in the financial sector creates strong network effects and continuously increases Frankfurt’s international importance. A clear sign of this is the steady increase in the number of bank employees, which has gained additional momentum following Brexit. According to forecasts, the number of bank employees in Frankfurt is expected to increase by 4% to around 73,500 by the end of 2025.
Frankfurt continues to attract international capital
The depth of Frankfurt as a financial centre is particularly attractive for the aforementioned institutions. In addition to the already established players, Frankfurt continues to attract international investors. By the end of 2022, foreign direct investment in Hesse totalled €150 billion, with nearly 65% of these investments attributable to the financial industry and the Frankfurt financial centre.
In addition to the financial sector, other factors also contribute to the strength of the Hessian economy. Frankfurt Airport is Germany’s largest workplace and a hub for goods and travellers from all over the world. Messe Frankfurt is one of the most important trade fair venues globally, highlighting Hesse’s international orientation.
The special economic structure of the entire federal state also plays a significant role. With a strong service sector and an industrial sector that is less pronounced than the German average, Hesse has proven to be resilient to economic fluctuations. The “Financing, Rental, and Business Services” sector alone generates nearly one-third of Hesse’s gross value added.
In summary, it can be said that the Frankfurt financial centre is a key driver of the Hessian economy. The high concentration of financial institutions, the strong international network and the steady increase in employment in the financial sector make Frankfurt an important economic centre in Germany and Europe.