HALLE (dpa-AFX) – This LeibnizThe Halle Institute for Economic Research (IWH) expects economic growth in East Germany to be slightly higher this year than the national average. The IWH announced that an increase of 0.7 percent is expected. Growth of 0.6 percent is forecast for Germany as a whole. The unemployment rate in the east could be 7.9 percent this year after 7.8 percent in 2025, it said.
The rise in energy prices triggered by the Iran war is likely to dampen the recovery, but will not bring it to a complete standstill because of the expansionary fiscal policy stance, according to the IWH experts. “The energy price shock will probably have about as much of a burden on the economy in eastern Germany as in Germany as a whole,” explained IWH Vice President Oliver Holtemöller.
Recently, value creation in the economic sectors of trade, transport, hospitality as well as information and communication has increased more strongly in East Germany than in West Germany, it was said./cki/DP/stw
