(Gemini Audio)
(de-news.net) — More than three decades after German reunification, East Germany continues to exhibit a pronounced economic lag relative to its western counterpart, according to a comprehensive study released by the German Economic Institute (IW). Led by economist Klaus-Heiner Röhl, the report offers a sobering assessment of the region’s developmental trajectory, attributing the enduring disparities to entrenched structural challenges. These include a persistent demographic decline, underinvestment in research and development, and a limited presence in high-productivity industrial sectors.
The study underscores that East Germany’s economic landscape remains fundamentally distinct from that of major western metropolitan areas such as Munich or Hamburg. The absence of large-scale industrial corporations and corporate headquarters in the East significantly impedes its capacity to replicate the growth dynamics of these urban centers. Röhl suggests that a more attainable goal lies in aligning East Germany’s economic profile with that of structurally comparable western states, such as Schleswig-Holstein or Rhineland-Palatinate, which share similar regional characteristics and industrial compositions.
Statistical indicators reinforce this assessment. In 2024, East Germany’s per capita gross domestic product (GDP), excluding the capital city Berlin, declined to 71.77% of the western level, a slight drop from 72.04% recorded in 2023. Röhl interprets this shift not as evidence of eastern economic progress, but rather as a reflection of stagnation or decline in western industrial output, which has narrowed the gap through regression rather than growth.
Despite these challenges, the report identifies areas of incremental improvement. Wage convergence and labor productivity have shown upward trends, bolstered in part by federal minimum wage legislation. These developments suggest that while macroeconomic parity remains elusive, microeconomic indicators are moving in a more favorable direction. To address looming labor shortages, Röhl advocates for a multifaceted strategy: extending working life through delayed retirement, attracting skilled migrants to the region, and leveraging existing housing infrastructure to accommodate workforce expansion. He also emphasizes the need to streamline administrative procedures to foster a more dynamic entrepreneurial environment.
In parallel with the economic analysis, a recent public opinion survey conducted by Insa Consulere sheds light on the sociopolitical sentiments prevalent in East Germany. The poll, carried out between 10–17 September 2025 across six eastern federal states including Berlin, reveals a deep-rooted reverence for the legacy of the peaceful revolution of 1989. Among the 1,000 respondents, 77% attribute the success of reunification to the civic courage demonstrated during that pivotal year, while 76% regard the revolution as a defining moment in the nation’s historical narrative. Respondents identified the following as the most important values and goals: German unity, freedom of expression, freedom of movement and free elections.
