Bremen's economic productivity shows a downward trend.
Decrease in Bremen's GDP and Employment Rates in 2024
Bremen's Gross Domestic Product (GDP) experienced a decrease of 1.0 percent in 2024, compared to a 0.2 percent decline at the federal level. An inflation-adjusted comparison reveals a stark contrast, with the economic output in Bremen rising by only 2.5 percent to 41.4 billion euros. Consequently, Bremen's share of Germany's total economic output, which amounts to around 4.3 trillion euros, remained approximately 1 percent in 2024.
The decline in economic output in Bremen can be attributed to a negative development in the gross value added in the manufacturing sector. Both Bremen and the federal level experienced this contraction, although it was less pronounced at the federal level. However, the service sectors showed a slight increase, with the areas of public and other services, education, and health performing particularly well.
In the same period, the number of employed persons in Bremen slightly decreased from around 444,300 to about 444,100. The exact reasons for the decline in GDP and employment rates in Bremen are not specified. However, general economic trends and conditions in Germany, such as economic uncertainties and geopolitical tensions, may have contributed to this decline. Moreover, Bremen's economy may be particularly dependent on industries that are experiencing challenges, such as manufacturing or automotive sectors.
The impact of the decline can also be seen in the employment rate, as businesses in the region may reduce workforce sizes to cut costs, leading to higher unemployment rates. SMEs, in particular, are under pressure, with many planning job cuts. Sectoral impacts could be more severe on manufacturing and export-oriented sectors, while service and tourism sectors may be less affected or even benefit from local consumption and tourism activities.
To gain a deeper understanding of the specific impact on Bremen, local economic data and trends should be analyzed in greater detail. The general economic conditions in Germany suggest that regional variations are influenced by a mix of global and local factors.
The decreased GDP in Bremen might be linked to challenges in certain industries, such as manufacturing and finance, given the contractions observed in their respective sectors.
A decline in employment rates also suggests potential job losses in local businesses, particularly Small and Medium Enterprises (SMEs), further indicative of a potential impact on the finance sector due to reduced workforce sizes.
