East Germany has clearly caught up with economic performance, research and quality of life – but remains structurally behind the west. This is shown by the new IFO factory monitor East Germany, which was presented at the East German Economic Forum (OWF) in Bad Saarow in Brandenburg.
The study, created by the IFO Institute Dresden on behalf of the Central German Foundation Science and Education, compares the economic, social and scientific development between East and West-as well as within East Germany itself.
Saxony’s export success, Thuringia’s industrial force
For example, Saxony’s export quota is 32 percent above the West German average, and Thuringia’s industrial share reaches the level of Bavaria. Berlin and Saxony also score with research outputs – both are among the top regions across Europe. Overall, the economic performance of East Germany is 86 percent of the West German average in terms of gross domestic product per hour of employment. Between 2019 and 2024, annual economic growth in the east was 0.3 percent above the West, which is particularly attributed to the Berlin economic boom.
Less immigration, but higher real wages
The monitor also highlights challenges: The proportion of foreign population is significantly lower at 7.2 percent than in the west (15.6 percent), but wages are real at over 90 percent of the western level – thanks to lower living costs.
The report was presented at the OWF by the so -called “Saarower Kreis”, an association of East German economic actors, who wants to give fact -based impulses for structural policy. Speaker Frank Nehring said: “East Germany is not a homogeneous weakness zone, but a future laboratory.” It takes more confidence in your own strengths and the courage to think of new things in terms of economy.