Germany is characterized by a high degree of economic diversity from one federal state to another. Several factors – such as industry, services, natural resources and geographic location – play a decisive role in shaping regional wealth. In this article, we present an approximate ranking of the German federal states in terms of their level of prosperity (usually measured by GDP per capita). We also highlight the main reasons for this prosperity, the key sources of income in each state, their share of Germany’s total population, and whether a state is a net contributor (Nettozahler) or a net recipient (Nettonehmer) within the federal financial system.
Note: This ranking is based on approximate figures and statistics up to the year 2025. Exact numbers may change from year to year depending on the general economic situation.
1. Hamburg
Approximate ranking: First in income per capita.
Reasons for prosperity and main income sources:
The Port of Hamburg is one of the largest ports in Europe, making logistics and foreign trade a key driver of the local economy.
A strong media sector (TV stations, publishing houses) and a highly developed infrastructure in banking and insurance.
Share of population: Around 2.3% of Germany’s total population (about 1.9 million inhabitants).
Financial role: Considered a net contributor in the federal financial system (it pays more than it receives). Hamburg does not depend on financial aid from other states but feeds the fiscal equalization system itself.
2. Bavaria (Bayern)
Approximate ranking: Second.
Reasons for prosperity and main income sources:
Major industries such as the automotive sector (BMW, Audi) and electronics (Siemens), as well as technology and software companies.
A growing tourism sector thanks to the Alps and historic cities like Munich.
Share of population: Around 15.7% of the total population (about 13.2 million inhabitants), making it the second largest state by population.
Financial role: One of the strongest contributors to the Länderfinanzausgleich (fiscal equalization). Bavaria is a clear net payer supporting less affluent states.
3. Baden-Württemberg
Approximate ranking: Third.
Reasons for prosperity and main income sources:
Leading industrial region in the automotive sector (Mercedes-Benz, Porsche) and in mechanical engineering.
Strong innovation capacity with intensive research and development, supported by renowned universities and research institutes.
Share of population: About 13.2% (around 11.1 million inhabitants).
Financial role: Like Bavaria, Baden-Württemberg is a classic net contributor within the federal system and plays an important role in stabilizing the national fiscal balance.
4. Hesse (Hessen)
Approximate ranking: Fourth.
Reasons for prosperity and main income sources:
Frankfurt is an international financial center, home to the European Central Bank and many global banks.
A broad services sector (finance, insurance, logistics).
Share of population: Around 7.5% (about 6.3 million inhabitants).
Financial role: Due to its strong financial and service sectors, Hesse is a net contributor that significantly supports the federal budget.
5. Bremen
Approximate ranking: Fifth in income per capita, despite being the smallest state by area and the second smallest by population.
Reasons for prosperity and main income sources:
The seaport of Bremen/Bremerhaven and international shipping.
Aerospace industry with facilities producing aircraft components.
Share of population: Around 0.8% only (about 0.68 million inhabitants).
Financial role: Bremen is usually a net recipient in the fiscal equalization system because its fiscal resources are limited compared to its public spending obligations, despite relatively high income per capita.
6. North Rhine-Westphalia (Nordrhein-Westfalen)
Approximate ranking: Sixth in income per capita.
Reasons for prosperity and main income sources:
Germany’s largest population center (Ruhr area) with enormous economic diversity between traditional industry and modern services.
Major companies in energy, chemicals and media.
Share of population: About 21% (around 17.9 million inhabitants), making it the most populous state in Germany.
Financial role: Depending on the year, North Rhine-Westphalia may be a net contributor or close to balanced. It has a powerful economy, but structural change and the decline of coal and steel create financial challenges.
7. Rhineland-Palatinate (Rheinland-Pfalz)
Approximate ranking: Seventh.
Reasons for prosperity and main income sources:
Wine production and highly developed agriculture, alongside important industrial companies.
Technology centers in cities such as Mainz and Kaiserslautern.
Share of population: Around 4.9% (about 4.1 million inhabitants).
Financial role: Its position shifts between modest contributions and limited net receipts; overall, its role in the equalization system is smaller than that of the large donor states.
8. Lower Saxony (Niedersachsen)
Approximate ranking: Eighth.
Reasons for prosperity and main income sources:
Headquarters of Volkswagen in Wolfsburg and extensive agricultural production.
Maritime services in the North Sea ports, including the port of Wilhelmshaven.
Share of population: Around 9.5% (about 8 million inhabitants).
Financial role: Lower Saxony often receives moderate support or is near a balanced position, as income levels vary greatly between large industrial cities and rural areas.
9. Schleswig-Holstein
Approximate ranking: Ninth.
Reasons for prosperity and main income sources:
Coastal tourism on the North Sea and Baltic Sea, Baltic ports, as well as agriculture and fisheries.
Transport and trade services in the traffic between Germany and the Scandinavian countries.
Share of population: Around 3.5% (about 2.9 million inhabitants).
Financial role: Schleswig-Holstein frequently benefits from fiscal equalization, as it is not a purely industrial state and relies strongly on services and tourism.
10. Berlin
Approximate ranking: Tenth in income per capita.
Reasons for prosperity and main income sources:
The political capital of Germany and a hub for many start-ups, with a very large tourism sector.
Seat of international organizations and top universities, strengthening the knowledge-based economy.
Share of population: Around 4.4% (about 3.7 million inhabitants).
Financial role: Berlin is primarily a net recipient, heavily supported by other states and the federal government, due to its long-standing high debt levels and the economic burden of reconstruction after the city’s reunification.
11. Saarland
Approximate ranking: Eleventh.
Reasons for prosperity and main income sources:
Border region with France and Luxembourg, characterized by intense trade relations.
Traditional heavy industry (steel, coal), which has undergone a deep process of structural change.
Share of population: Around 1.2% (about 0.98 million inhabitants).
Financial role: Saarland is generally a net recipient, as its industrial resources are limited and the legacy of heavy industry weighs on the public budget.
12. Brandenburg
Approximate ranking: Twelfth.
Reasons for prosperity and main income sources:
Agriculture and forestry, alongside a growing sector of renewable energy (wind farms and solar power).
Benefits from its proximity to Berlin through strong economic and regional linkages.
Share of population: Around 3% (about 2.5 million inhabitants).
Financial role: Brandenburg typically receives federal funds and transfers from richer states to strengthen infrastructure and regional development.
13. Saxony (Sachsen)
Approximate ranking: Thirteenth.
Reasons for prosperity and main income sources:
Automobile production (Volkswagen and BMW plants in Leipzig and Dresden) and microelectronics (“Silicon Saxony”).
Despite clear economic improvements since German reunification, income per capita is still lower than in the western states.
Share of population: Around 4.9% (about 4.1 million inhabitants).
Financial role: Historically mainly a net recipient; the situation is gradually improving as the technology and industry sectors grow.
14. Mecklenburg-Vorpommern
Approximate ranking: Fourteenth.
Reasons for prosperity and main income sources:
Coastal tourism on the Baltic Sea (e.g. Rügen, Usedom), fisheries and agriculture.
Industrial development remains limited, and the state relies heavily on external investment.
Share of population: Around 1.9% (about 1.6 million inhabitants).
Financial role: One of the states that depend strongly on transfers, due to its narrow industrial base.
15. Saxony-Anhalt (Sachsen-Anhalt)
Approximate ranking: Fifteenth.
Reasons for prosperity and main income sources:
Agriculture and chemical industries in certain regions (e.g. Leuna, Bitterfeld).
Demographic challenges and migration of workers to western Germany.
Share of population: Around 2.6% (about 2.2 million inhabitants).
Financial role: Saxony-Anhalt receives financial support to strengthen its local economy and has not yet reached the level of the western industrial states.
16. Thuringia (Thüringen)
Approximate ranking: Sixteenth and close to the bottom in terms of income per capita.
Reasons for prosperity and main income sources:
Limited industrial diversity, though there are some precision industries in cities such as Erfurt, Jena and Eisenach.
Agriculture and forestry play a role but are not yet strong enough in terms of overall economic output.
Share of population: Around 2.5% (about 2.1 million inhabitants).
Financial role: Thuringia is one of the beneficiaries of financial transfers from other states, which aim to ensure a more balanced level of regional development.
Conclusion
This approximate ranking illustrates the strong economic diversity within Germany. While city states and industrial or technology-focused regions (such as Hamburg, Bavaria, Baden-Württemberg and Hesse) lead the list of the wealthiest states in terms of income per capita, other states – especially in the east and northeast – face challenges related to infrastructure and the long-term process of economic transformation after reunification.
Despite these disparities, the federal system maintains the principle of solidarity. Through the Länderfinanzausgleich, funds are transferred from high-income to low-income states, ensuring a more balanced economic and social situation across the country.
Taken together, this overview helps you understand how different income levels are distributed across Germany’s regions and what underlying reasons explain why some states are industrial and financial leaders while others require more stimulus and development. At the same time, this diversity is a key feature of the German economic landscape and strengthens integration and cooperation among the states within the federal model – up to 2025 and beyond.
The editorial team of the website strives to provide accurate information through intensive research and consultation of multiple sources. Nevertheless, errors may occur or some information may be uncertain. The information presented in this article should therefore be regarded as an initial orientation only. For binding details, you should always contact the competent official authorities.
