HWWI probes Hamburg's progress towards 2040 strategy

13 March 2025

Hamburg Institute of International Economics compares progress towards 2040 strategy nationwide

The Hamburg Institute of International Economics (HWWI) has presented the results of a study commissioned by the Chamber of Commerce on progress made towards the goals of the "Hamburg 2040" strategy compared to other federal states and regions. The Chamber of Commerce developed the "Hamburg 2040" strategy in response to crises such as the continuing effects of the pandemic, international supply shortages and the war in Ukraine, all of which pose major challenges for Hamburg. The strategy sets cornerstones for climate change, demographic change and developments in artificial intelligence.

Six key dimensions of "Hamburg 2040"

The strategy foresees transforming Hamburg into an economically, socially and ecologically resilient city based on the six key dimensions of economic dynamism, competitiveness, innovative strength, northern German networking, quality of life and sustainability. The results present progress and challenges in the respective dimensions.

1. Economic dynamism

Hamburg is well positioned in terms of economic dynamism in a north-south comparison, according to HWWI. The Chamber of Commerce's business climate index has recovered well in the wake of the pandemic and the war in Ukraine, despite persistently high labour costs and a continuing shortage of skilled labourers. Other challenges include the low employment rate of foreigners compared to locals and that of men compared to the rest of Germany. HWWI therefore recommends tapping the potential of the foreign workforce.

2. Competitiveness

The city ranks first in Germany in terms of overall competitiveness, but could develop its potential on a global scale. And Hamburg is stagnating in terms of innovation and market efficiency, the study found. One opportunity lies in making Hamburg more appealing to international foreign students and workers.

3. Innovative strength

Hamburg is a national leader in innovation, but there is room for improvement internationally. The city has a well-received and robust digital government offer, which is successfully driving digital transformation by national standards. However, the relatively low proportion of STEM (science, technology, engineering and mathematics) students and declining patent applications could dampen Hamburg's innovative strength.

4. National networking

The port highlights Hamburg's national networking of the (north) German economy and its role as an international trade hub. However, awareness of the risks of unilateral dependencies is needed and promoting resilient value chains. Trade with Scandinavia is a source of growth and stimulus. Strong commuter flows are also evidence of Hamburg's attractiveness as a work and business centre.

5. Quality of life

Regardless of district, residents should be able to walk or cycle to key amenities in 15 minutes. The goal of the 15-minute city is now a reality in many respects. Good local amenities and a diverse cultural offer including libraries, museums and theatres make Hamburg a good place to live. Childcare is also devleoping positively although there is room for improvement. However, high property rents and purchase prices make affordable housing difficult and is having a huge impact on the quality of life. That also frustrates attempts to attract labour and remains one of the main risks to business in the city.

6. Sustainability

Hamburg has slashed its CO2 emissions over the past 20 years and saved 6.26 tonnes per inhabitant in 2020. The city is strengthening and expanding public transport, which has seen a steady increase in kilometres travelled since 2008. Electromobility is also being promoted and the gradual installation of charging pointsfor electric vehicles is making transport sustainable. However, there is still room for improvement when it comes to renewable energy and optimising waste management, HWWI’s study found.

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