Bremen's economy surges 1.4% in 2025, fueled by defence and aerospace boom

Bremen’s economy grew by 1.4% in 2025, far outpacing Germany’s overall growth of 0.2%. The city’s industrial sector, particularly defence and aerospace, led this strong performance in the first half of the year. A major defence collaboration is underway in Bremen, with Airbus, OHB, and Rheinmetall working together on military satellites. The city will also host a new branch of the Federal Office of Bundeswehr Equipment, merging naval and space defence procurement under one roof.

The federal government has earmarked €1.35 billion from the defence budget for Bremen’s ports. Additionally, Rönner Werft is set to construct four frigates for the German Navy, a deal valued at €6 billion. Private investment is also flowing in, with Maersk and EUROGATE committing €1 billion to upgrade Bremerhaven’s port infrastructure.

Despite this growth, challenges remain. High location costs and a low investment rate persist, with only one in ten euros from Bremen’s 2025 budget allocated for investment. Bremen’s industrial strength, particularly in defence and aerospace, has driven its economic outperformance. Significant public and private investments in ports and military projects are expected to further bolster the region’s position.