Mun/Com/201/1/2010
Monthly Economic and Commercial Report
CGI, Munich, Germany: November 2010
(Consular Jurisdiction: Bavaria & Baden-Wurttemberg)
Executive Summary
· German economy recovers· GDP of Bavaria grows by 3.2% during the 1st half of 2010
· GDP of Baden-Wuertttemberg grows by 5% during the 1st half of 2010
· GDP of Germany grows by 3.1% during the 1st half of 2010
· Indo-Bavarian trade during Jan-Sep 2010 at € 1.52 billion (19.1% change)
· Indo-Baden-Wurttemberg trade during Jan-Sep 2010 at € 1.67 billion (30.73% change)
· Indo-German trade during Jan-Sep 2010 at € 11.16 billion (17.31% change)
· “Germany-India 2011-2012”: Munich. November 9, 2010
· Meeting with Deputy Mayor of Nuremberg: Munich. November 10, 2010
· Seminar on “Options for German entrepreneurs in India in particular in the Indian Automobile Industry” : Stuttgart November 11, 2010
· Display of Tata Nano car at the famous Deutsches Museum in Munich: November 18, 2010
· Seminars on ‘Demand for Environment Technology in India: Nuremberg (Nov 23) and Munich (Nov 25)
· 2nd Advisory Council Meeting of BayIND: Munich. November 24, 2010
· Visit of ACMA delegation: Munich. November 22-26, 2010
· Road-show on Goa Tourism: Munich. November 26, 2010
· Electronica 2010: November 9-12, 2010
· Hiem + Handwerk 2010: November 24-28, 2010
· Bavarian Foreign Trade continues to mark double digit growth
· Baden-Wuerttemberg economy booms
I) Economic Outlook Germany
German economy recovers
1. The German economy is rapidly recovering. According to a latest report published by Federal Statistical Office, German GDP grew by 0.7% in the third quarter of 2010 on the second quarter. In addition, the results for the first two quarters of the year 2010 were also slightly corrected upwards again, now reaching +0.6% and +2.3%, respectively. When compared with the previous year, the GDP increased considerably. The price-adjusted GDP was up by 3.9% in the third quarter of 2010 on the third quarter of 2009. In a quarter-on-quarter comparison both domestic and foreign demand made a positive contribution to growth. GDP growth was based equally on household and government final consumption expenditure, gross fixed capital formation in machinery and equipment, and the balance of exports and imports. The GDP growth in the third quarter of 2010 was achieved by 40.7million employees in Germany, which is an increase of 307,000persons or 0.8% on a year earlier. German economy shrank by 4.7% during the crisis year in 2009.
2. Meanwhile, various Economic organisations forecast higher GDP growth rates for 2010 and 2011. According to the autumn review published by German Economic Ministry on October 21, 2010, German economy is projected to grow by 3.4 percent in 2010 and by 1.8 % in 2011, much higher than its previous forecasts.The German Council of Economic Experts predicted that Germany's economy will grow by 3.7 percent in 2010, and by 2.2 percent in 2011 - a prognosis that even exceeds the latest official estimates from Chancellor Merkel's government. The council, often referred to as the Five Wise Men of the Economy was set up in 1963 to advise the government on economic policy. The expert panel advised that the government could support the fragile growth by issuing stricter regulations on the global financial sector and continuing to consolidate German overspending, besides issuing warnings against rash cuts in taxes and excessive increases in wages.
3. During the first half of the year 2010, German GDP grew by a surprising 3.1%, where all the 16 German States noted positive growth. The strongest GDP growth was marked by the southern State of Baden-Wuerttemberg (5%), whereas the GDP of Bavaria grew by 3.2%. These figures are impressive when compared to the negative growth of 6.8%, 6.6% and 10.1% shown by Germany, Bavaria and Baden-Wuerttemberg respectively during the first half of 2009.
II) GDP Figures
4. In value terms, GDP of Germany at current prices in 2009, amounted to Euro 2407 billion, that of Bavaria Euro 429 billion and Baden-Wuerttemberg Euro 343 billion. Comparative GDP figures along with growth rates of Bavaria, Baden-Wuerttemberg and Germany are given below.
III) Inflation rate
5. Inflation rate in Bavaria in November 2010 was 1.7%. Compared to previous year, the price for heating oil increased by 19.1%, petrol by 7% and food by 4%.
6. Inflation rate in Baden-Wuerttemberg in November 2010 was 1.6%. Compared to previous year, the price for heating oil increased by 19.3%, diesel by 11.1%, petrol by 5.7% and food by 2.6%.
Sr. No / States / Inflation rate (% change over same period in previous year)November 2009 / November 2010
1 / Bavaria / 0.4 / 1.7
2 / Baden-Wurttemberg / 0.4 / 1.6
IV) Trade figures
Value in billion Euros & change in % over same period of previous year2008 / % Change / 2009 / % Change / Jan-Sep 2010 / % Change
Bavarian Export / 155 / 1.31 / 123 / -20.65 / 106.1 / 17.5
Bavarian import / 129 / 4.88 / 109 / -15.5 / 96.1 / 19.23
Total Trade of Bavaria / 284 / 2.9 / 232 / -18.31 / 202.2 / 18.31
Export of Baden-Wuerttemberg / 151 / 0.67 / 125 / -17.22 / 111.8 / 23.26
Import of Baden-Wuerttemberg / 130 / 5.69 / 109 / -16.15 / 94.1 / 15.89
Total Trade of Baden-Wuerttemberg / 281 / 2.93 / 234 / -16.73 / 205.9 / 19.78
German Exports / 994 / 2.58 / 807 / -18.81 / 702.8 / 19.02
German Imports / 823 / 6.88 / 673 / -18.23 / 588.7 / 19.46
Total Trade of Germany / 1817 / 4.49 / 1480 / -18.55 / 1291.5 / 19.22
V) Trade with 10 major Countries and India
The trade figures of Bavaria and Baden-Wuerttemberg along with the rankings and value of trade for the year 2009 are given in tables below.
Bavarian Imports (In million Euro)Rank / Country / 2009 / % Change
1 / Austria / 12126 / -13.3
2 / China / 11373 / -5.8
3 / Italy / 8540 / -12.7
4 / USA / 7737 / -15.5
5 / Czech Republic / 7452 / -14
6 / France / 5636 / -20.2
7 / Russia / 5533 / -14.7
8 / Netherlands / 5418 / 0
9 / Hungary / 4049 / -18.9
10 / UK / 3558 / -19.6
Total Imports / 109943 / -15.4
/ Bavarian Exports (In million Euro)
Rank / Country / 2009 / % Change
1 / Austria / 11938 / -13
2 / USA / 11130 / -25.2
3 / Italy / 10141 / -18.8
4 / France / 10072 / -13.2
5 / UK / 8556 / -22.2
6 / China / 7800 / 4.1
7 / Spain / 4861 / -26.3
8 / Netherlands / 4829 / -11.1
9 / Belgium / 4481 / -11.1
10 / Switzerland / 4315 / -15.5
Total Exports / 123991 / -20.4
Baden-Wuerttemberg’s Imports
(In million Euro)
Rank / Country / 2009 / % Change
1 / USA / 10688 / -6.74
2 / Switzerland / 10292 / -4.45
3 / France / 8959 / -20.6
4 / Ireland / 8479 / -14.92
5 / Italy / 8408 / -14.3
6 / China / 5829 / -9.64
7 / Netherlands / 5378 / -16.62
8 / Austria / 4856 / -6.67
9 / Czech Republic / 4158 / -12.74
10 / UK / 4078 / -13.62
Total Imports / 109078 / -16.28
/ Baden-Wuerttemberg’s Exports
(In million Euro)
Rank / Country / 2009 / % Change
1 / France / 11248 / -18.5
2 / USA / 10111 / -23.58
3 / Switzerland / 9788 / 1.7
4 / Netherlands / 8749 / -17.88
5 / Austria / 8489 / 3.03
6 / UK / 7524 / -21.28
7 / Italy / 7226 / -27.88
8 / China / 6450 / 4.62
9 / Belgium / 5242 / -17.71
10 / Spain / 4472 / -32.27
Total Exports / 125012 / -17.34
VI) Indo-Bavarian/Baden-Wurttemberg/German Trade
7. The encouraging trend in Indo-German trade continues. During the period January- September 2010, Indian exports to Bavaria, increased by 25.92 % to €549 million, to Baden-Wuerttemberg by 19.6 % to €598 million and to Germany as whole by 14.23 % to €4.48 billion. During the first nine months of the year 2010, India’s total trade with the State of Bavaria increased by 19.1% to Euro 1.52 billion, the two-way trade with Baden-Wuerttemberg increased by 30.73% to €1.67 billion and Indo-German trade as a whole increased by 17.31% to €11.16 billion.
Value in million Euros & change in % over same period of previous year2008 / % Change / 2009 / % Change / Jan-Sep 2010 / % Change
Indian Exports to Bavaria / 665 / 26.67 / 567 / -14.74 / 549 / 25.92
Indian Imports from Bavaria / 1342 / 22 / 1132 / -15.65 / 979 / 15.58
Total Trade / 2007 / 23.51 / 1699 / -15.35 / 1528 / 19.1
Indian Exports to Baden-Wuerttemberg / 715 / 18.57 / 672 / -6.01 / 598 / 19.6
Indian Imports from Baden-Wuerttemberg / 1480 / 18.68 / 1210 / -18.24 / 1074 / 37.87
Total Trade / 2195 / 18.65 / 1882 / -14.26 / 1672 / 30.73
Indian Exports to Germany / 5252 / 11.25 / 5104 / -2.82 / 4486 / 14.23
Indian Imports form Germany / 8154 / 10.88 / 7997 / -1.93 / 6675 / 19.47
Total Trade / 13406 / 11.02 / 13101 / -2.28 / 11161 / 17.31
Major 10 Indian Exports to Bavaria
Year 2008 / % Change / Year 2009 / % ChangeSy.Co / Product category / Euro / Euro
804 / Apparel of silk or man-made fibres, excl. Of knitted or crocheted fabrics / 10955846 / 3.52 / 14791268 / 35.01
865 / Electronic valves and tubes and other electronic components / 61388908 / 307.67 / 19654244 / -67.98
734 / Paints, varnishes and mastics / 27525619 / 87.59 / 25607313 / -6.97
844 / Bearings, gears, gearing and driving elements / 55372613 / 66.37 / 27353014 / -50.6
809 / Textile products n.e.s / 29919424 / 19.74 / 27666243 / -7.53
861 / Machinery & Apparatus for electricity production distribution and control / 42066076 / 35.39 / 37527582 / -10.79
806 / Apparel of cotton, excl. of knitted or crocheted fabrics / 35668877 / -5.82 / 37934123 / 6.35
803 / Apparel of knitted or crocheted fabrics of cotton / 40763835 / -8.09 / 40910184 / 0.36
811 / Footwear / 39605787 / 3.68 / 45589380 / 15.11
812 / Articles of leather and leather clothes (excl. footwear) / 49282449 / 12.37 / 52540360 / 6.61
Total Imports of Bavaria from India / 665635707 / 26.83 / 567126214 / -14.8
Major 10 Indian Imports from Bavaria
Year 2008 / % Change / Year 2009 / % ChangeSy.Co / Product Category / Euro / Euro
885 / Automobiles / 19923516 / -19.06 / 33431234 / 67.8
852 / Machine Tools / 62986420 / -44.69 / 41987493 / -33.34
872 / Measuring and automatic control instruments and appliances / 47614508 / 16.45 / 43810370 / -7.99
884 / Chassis, bodies, engines, parts and accessories for motor vehicles, etc / 52263379 / 28.72 / 52919832 / 1.26
851 / Machinery for working rubber or plastics / 49300573 / 158.43 / 68455781 / 38.85
871 / Medical and surgical equipment and orthopaedic appliances / 80465722 / 0.22 / 71158628 / -11.57
859 / Machinery, n.e.s / 100990935 / 17.46 / 73074911 / -27.64
844 / Bearings, gears, gearing and driving elements / 115324687 / 16.37 / 74903212 / -35.05
891 / Industrial plants / 15333182 / 904.9 / 96995666 / 532.59
861 / Machinery and apparatus for electricity production, distri. & Cont. / 197803780 / 50.08 / 150522287 / -23.9
Total Exports of Bavaria to India / 1342130382 / 21.98 / 1132607686 / -15.61
Major 10 Indian Exports to Baden-Wurttemberg
Year 2008 / % Change / Year 2009 / % ChangeSy.Co / Product category / Euro / Euro
864 / Television and radio receivers, sound or video recording or reproducing appar. associated goods / 25584607 / 28.37 / 20684670 / -19.15
806 / Apparel of cotton, excl. Of knitted or croche.fabrics / 13030214 / 9.57 / 24618767 / 88.94
861 / Machinery & Apparatus for electricity production distribution and control / 20501276 / 119.9 / 24889613 / 21.41
878 / Jewellery, goldsmith's or silversmith's wares / 36235104 / -5.02 / 27397890 / -24.39
803 / Apparel of knitted or crocheted fabrics of cotton / 27808545 / 1.86 / 34259157 / 23.2
812 / Articles of leather and leather clothes (excl. footwear) / 31012628 / 20.21 / 37066247 / 19.52
884 / Chassis, bodies, engines, parts & acce. for motor vehicle .etc / 75098609 / 9.89 / 45092638 / -39.96
740 / Basic pharmaceutical products / 54875359 / 30.81 / 47807316 / -12.88
829 / Articles of metal, n.e.s / 48704075 / 28.11 / 49472113 / 1.58
885 / Automobiles / 64869424 / 313.8 / 70331529 / 8.42
Total Imports of Baden-Wuerttemberg from India / 715045442 / 18.42 / 672751487 / -5.91
Major 10 Indian Imports from Baden-Wurttemberg
Year 2008 / % Change / Year 2009 / % ChangeSy.Co / Product category / Euro / Euro
845 / Lifting and handling equipment / 69268991 / 131.96 / 33796880 / -51.21
841 / Motors and engines (excl.engines for agri.tractors,aircraft,road vehicles) / 80744367 / 111.73 / 33917289 / -57.99
847 / Machinery for Textile Apparel and leather Production / 51004965 / -38.85 / 35006947 / -31.37
871 / Medical and surgical equipment and orthopaedic appliances / 42798205 / 16.28 / 47134631 / 10.13
884 / Chassis, bodies, engines, parts and accessories for motor vehicles, etc / 56730245 / 18.5 / 55875990 / -1.51
854 / Machinery for paper production and printing / 107317463 / 129.05 / 72974135 / -32
872 / Measuring and automatic control instruments and appliances / 77076835 / 15.81 / 78387455 / 1.7
861 / Machinery and appara. for electricity production .distribution & Control / 90613536 / 13.39 / 80150351 / -11.55
859 / Machinery, n.e.s / 148434223 / 29.77 / 117713047 / -20.7
852 / Machine Tools / 161573025 / 20.88 / 127969000 / -20.8
Total Exports of Baden-Wuerttemberg to India / 1480731072 / 18.69 / 1210790994 / -18.23
VII) Five principal export commodities