Economies of eastern German states show more spark

Economies of eastern German states show more spark
Photo: DPA
The economies of Germany’s formerly communist states have proven more dynamic than their western counterparts over the past three years, according to a study released on Friday.

Saxony-Anhalt, long known for its high unemployment and dismal economic outlook, topped the economic dynamism rankings compiled by the INSM institute and Wirtschaftwoche magazine, followed by Brandenburg and Mecklenburg-Western Pomerania.

“The dynamism rankings show that eastern German states including Berlin have profited the most from the upswing in recent years,” said INSM director Max Höfer. “Growth in the eastern states has been driven above all by manufacturing and its associated services.”

Wealthy Bavaria is the most dynamic western German state, coming in at seventh place. Tiny Saarland brought up the rear.

But the dynamism of eastern German states is likely partially due to the fact they still lag western Germany 20 years after the fall of the Berlin Wall.

The study’s rankings for overall economic strength were led by Bavaria and Baden-Württemberg, while eastern German states took the bottom places.

“Despite the good news about the surprisingly positive developments taking place in eastern Germany, it’s still clear that the East is still far behind the West when it comes to comparable levels of prosperity,” Höfer said.

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