NIEDERSACHSEN - Economy
Highly productive agricultural sector
The agriculture and forestry sector contributed 2.3% of gross value added in 2002, twice as much as in Germany as a whole. In absolute terms, Niedersachsen came in in second place, behind Bavaria. Agriculture in Niedersachsen is characterised by large, efficient holdings whose productivity is about 40% above the German average.
Niedersachsen's industry dominated by vehicle production
In 2002, manufacturing contributed 30.2% of gross value added, i.e. slightly more than in Germany as a whole. Motor vehicle construction is easily the dominant branch in Niedersachsen's industry, and is present in Wolfsburg, Hanover, Braunschweig, Salzgitter, Innsbruck and Emden. Other important branches are food production, electronics, chemicals and mechanical engineering. Food production is much more important in Niedersachsen than in the rest of Germany, while the three other branches are less significant there than in Germany as a whole. About 57% of the employed labour force is employed by businesses with fewer than 500 employees, while the others are employed in one of about 150 large businesses.
Construction/civil engineering businesses tend to be medium-sized companies. None of the 100 biggest businesses by turnover is in the construction sector.
Exports
Mainly because of the importance of the export-oriented motor industry, nearly 42% of manufacturing turnover (more than the German average) is generated by exports. Niedersachsen's exports are concentrated on a few western industrial countries, most notably the United Kingdom and the Netherlands, which account for 9.1% and 9.0% of the total respectively. About 56% of all Niedersachsen's exports are destined for the EU, and are concentrated on relatively few product groups. By way of example, nearly one-third of its exports are accounted for by motor vehicles. The next most important branches are mechanical engineering, chemicals, electronics and food, but there are also a number of other branches with interesting products, around 40% of their output being destined for export. Nevertheless, some of these export-oriented branches are coming under fierce price competition, including competition from non-EU countries, and are therefore exceptionally dependent on economic developments in producer and consumer countries.
Products which are sold mainly in Germany should not be overlooked, however: Niedersachsen accounts for about 90% of Germany's natural gas production and 50% of its oil output, although turnover in 2002 was only €3.7 billion. The fact that the food sector has a turnover of €21.5 billion, but an export share of just 13%, reflects Germany's importance in its own right as a major market of more than 80 million people.
Structural weakness in business services
The services sector generates 67.4% of Niedersachsen's real gross value added. This figure, which is slightly below the German average of 70.2%, can be explained in part by the central importance of Hamburg and Bremen for their surrounding areas in Niedersachsen. In the more specific field of business services, Niedersachsen is about 3% below the German average.
Transport
As of 1 January 2003, 5.33 million vehicles were registered in Niedersachsen. There were 670 motor vehicles per 1 000 inhabitants, which was more than the German average (651 vehicles per 1 000 inhabitants). On 1 January 1995, the vehicle park had been much smaller, at 602 motor vehicles per 1 000 inhabitants (575 per 1 000 in Germany as a whole). As of 1 January 2003, Niedersachsen had 28 168 km of trunk roads, including 1 357 km of Federal motorways. The volume of air freight handled by Hannover-Langenhagen Airport in 2002 was 4 932 tonnes. Niedersachsen's ports handled 56.7 million tonnes of goods in that year, and its inland ports 23.6 million tonnes.
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