Economic power

Rhineland-Palatinate belongs to the so-called dynamic southwest of Germany. The state has a powerful and diverse economic structure, in which the industry plays a particularly important role. Of especial significance are the pharmaceutical and chemical industries, the commercial vehicle industry, the mechanical engineering sector, the rubber and plastics industries and the metal industry. With annual revenues of several billion euros, the chemical industry is the industrial sector with the highest turnover in Rhineland-Palatinate. More than 47,000 people were employed in this sector in 2021. The chemical industry is mainly located along the Rhine between the cities of Lahnstein, Mainz, Worms and Ludwigshafen, but also in Bad Kreuznach and Pirmasens.

Great achievements are also accomplished in the motor vehicle and motor vehicle parts industries as well as in the mechanical engineering sector. Here, total annual revenues in the billions are recorded as well.  The coexistence and cooperation of large and medium-sized companies within Rhineland-Palatinate leads to these outstanding economical results. 

The proximity to the European neighbours France, Belgium and Luxembourg offers the perfect geographical location to access new markets. Especially the industry benefits from these export conditions. More than half of the turnover of Rhineland-Palatinate's industry is generated abroad. In the high-tech region of Kaiserslautern, cutting-edge technologies are researched and developed while maintaining an international approach to science and research.

Medium-sized companies or the so called “German Mittelstand” shape the economic structure of Rhineland-Palatinate. These companies are represented in all areas of the economy and have a determining influence on crafts, trade and other services as well as on the manufacturing and the industrial sectors. Medium-sized companies range from traditional businesses to innovative businesses of the digital economy. These types of businesses play an important role in the economic system of Rhineland-Palatinate.

Medium-sized companies are known for broad competition. They continuously develop their product range to keep up with the changing demands of their clients. Innovative start-ups bring new ideas to market, fill market niches or access new markets. Especially in rather rural Rhineland-Palatinate, medium-sized companies ensure good living and working conditions not only in large cities but also in the countryside.

Agriculture is another important economic sector of Rhineland-Palatinate. Here, the variety of cultivated crops is greater than in any other federal state. Viticulture is of crucial importance in this regard. Rhineland-Palatinate accounts for around 90 percent of all wine exports in Germany. Around 6,500 companies are located in the six wine growing regions of Rhinehesse, Palatinate, Moselle, Nahe, Middle Rhine and Ahr. It is therefore not surprising that Rhineland-Palatinate is also referred to as wine state within Germany.