07/22/2009

Germany's '10 Cities with Best Future'

Hamburg Steals Top Spot From Munich

Hamburg is the German city best equipped to bounce back after the recession, according to a new report. For the first time the port has overtaken Munich as the German city with the greatest prospects for economic growth in the near future.

When it comes to future economic prospects, Hamburg this year for the first time surpassed southern German technology hub Munich in a ranking of cities for whom the future looks brightest. The business magazine Capital evaluated German cities with criteria that included the economy, employment opportunities, the population and spending power, and put the former Hanseatic League city, where the tenets of trade and globalization seem to be hard-wired into the local population, on top.

The study, conducted by the economic research instute Feri for Capital, examined the growth potential for 60 German cities between 2006 and 2015. Compared to last year's rankings, Hamburg shot up from No. 4 to No. 1, ahead of Munich, Münster, Wiesbaden and Freiburg. Other cities that made it into the Top 10 included Heidelberg, Stuttgart, Frankfurt and Düsseldorf.

"No other location in Germany is as well-prepared for globalization and international trade as Hamburg," said Feri economist Manfred Binsfeld. The ranking forecasts economic growth in Hamburg of 13.5 percent by 2015. That time frame will also see the number of jobs in the city swell to 1.1 million -- an increase of 5.4 percent. Nevertheless, the international hub has felt the effects of the recession this year, particularly its port, which has seen revenues plummet. But this decline appears to be only temporary.

The study also shows that it is not just the traditional economic centers that are fighting it out for the pole position -- smaller university towns like Freiburg and Heidelberg are also making their mark in the competition. Binsfeld points out a striking trend of mid-size centers of learning rising up the list. One example is Münster: Within a year, the town has risen from No. 14 to No. 3 on the list. Freiburg, which last year came in at No. 12, is now in fourth place. Bonn, the former German capital and today home to international firms and organizations including United Nations agencies, climbed four places to No. 6.

"It is precisely in such times of crisis, that it becomes clear how important knowledge is, as an economic factor," Binsfeld said, offering an explanation for the trend. "The results of the competition are increasingly based on smart strategy."

ecb -- with wires

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