Overview

• East Germany's productivity has reached 86% of West Germany's level, with annual growth outpacing the West by 0.3% from 2019 to 2024, driven by Berlin's service sector boom.
• Saxony's export share of 32% surpasses the West German average, while Thuringia's industrial capacity matches that of Bavaria, showcasing regional economic strengths.
• Research and development investment in East Germany stands at 2.41% of GDP, below the West's 3.24%, though Berlin and Saxony approach western benchmarks with over 3%.
• Demographic challenges persist, with East Germany losing 10% of its population since 1991 and aging faster, while foreign residents account for only 7.2% compared to over 15% in the West.
• East German hourly wages are 12% lower than in the West, but lower living costs result in real wages exceeding 90% of western levels, enhancing regional affordability.