Your contact
Volker Leinweber
Economics and Foreign Trade
+49 (0) 89-551 78-133 +49 (0) 173-573 89 25 Send an e-mail
Economic Impact of Bavarian Business in the USA
Bavaria is anything but an insignificant partner of the USA. Bavarian companies in the United States generate a high level of added value and employment in the USA, in both direct and indirect ways.
USA is the number one investment destination
The stock of Bavarian direct investment in the USA totaled EUR 94.4 billion in 2021, which was 32.0 percent of all Bavarian foreign investment and EUR 32 billion more than Bavaria's investment stock in the EU as a whole. This makes the United States by far the main destination for Bavarian direct investment. Compared to 2017, the Bavarian investment portfolio in the USA has grown by 33.1%, more than in any other region.
Bavarian companies generate 131 billion euros in added value in the USA
Bavarian-controlled companies - i.e. companies in which Bavarian investors hold at least 50 percent of the capital or voting rights - generate value added of 45.5 billion euros. In addition, there is an indirect value added effect through the purchase of intermediate goods and services by Bavarian companies from other companies as well as an induced effect through the consumer spending of the employees of Bavarian companies. In total, the Bavarian-controlled companies thus generate value added amounting to 131.5 billion euros. That is 0.76 percent of total US value added and more than the value added by the US state of Mississippi.
728,000 jobs in the USA are secured by Bavarian companies
The economic impact of the Bavarian business in the US includes not only added value, but also jobs. The Bavarian-controlled companies employ 159,000 people. The indirect and induced effects secure a further 569,000 jobs - a total of 728,000 jobs. That is 0.48 percent of total employment in the USA and more than the number of employees in the state of Montana.
Importance of the Bavarian business has increased
Bavaria's economic footprint in the USA has grown in recent years. The value added generated by Bavarian-controlled companies rose from 103.7 to 131.5 billion euros between 2017 and 2021. The employment impact increased from 623,000 to 728,000 employees. Compared to the US economy as a whole, both figures grew at an above-average rate, meaning that the impact of the Bavarian business in the US also increased in relative terms - from 0.62 to 0.76 percent in terms of value added and from 0.41 to 0.48 percent in terms of employment.
