MUNICH / LONDON (IT BOLTWISE) – The Bavarian economy is facing major challenges as exports fell by nine percent in August 2025 compared to the previous year. Exports to the USA have been particularly affected, falling by around 23 percent. The vbw calls for urgent reforms to ensure competitiveness.
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The Bavarian economy faces a significant decline in exports in August 2025. According to the latest figures from the State Office for Statistics, the export value fell by nine percent compared to the same month last year, which corresponds to a total value of 14.6 billion euros. Imports also recorded a decline of six percent and now amount to 16.1 billion euros. The Bavarian Business Association (vbw) considers this development to be alarming.
What is particularly worrying is the collapse in exports to the USA, which remains the most important sales market for Bavaria with a volume of 1.4 billion euros. The decline of around 23 percent compared to the previous year poses major challenges for companies. Despite the EU-US customs deal, which was intended to provide planning security, companies are struggling with the economic consequences. Exports to other important markets such as China are also declining, which further exacerbates the difficult foreign economic situation.
The vbw sees an urgent need for action and calls on the federal government to increase the pace of reform. The high burden of labor, wage and energy costs as well as the excessive bureaucracy are putting a strain on companies. In addition, distortions of competition and strong competition from China are making the situation more difficult. The vbw emphasizes that only through a radical reduction in bureaucracy and a reform of the social security systems can Bavaria be made more competitive again.
There is also a mixed picture when it comes to export goods. While exports of electrical engineering products increased slightly, other important goods such as cars and mobile homes recorded a significant decline of 44.2 percent. This development underlines the need for further economic stimulus to stabilize the Bavarian economy and keep it internationally competitive.
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