What Factors Are Favoring the Recovery of German Counties from the Financial Crisis?

As a result of the global financial crisis, the gross domestic product per inhabitant of German counties slumped significantly in 2009 compared with the previous year. This article examines at the county level the factors that contributed to the full and relatively rapid recovery of real gross domestic product per inhabitant. Our findings show that a broadly based economic structure and a stable labor market appear to be the main factors.