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[POLITICS] · Germany · 4 sources

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East Germany faces economic risks from labor shortages and migration trends

The Institute of the German Economy (IW) warns that East Germany faces significant economic risks and potential loss of prosperity due to labor shortages and declining immigration. Between 2023 and 2025, the six eastern federal states, including Berlin, saw a loss of approximately 141,000 employees with German citizenship, while the number of non-German employees rose by 90,000. Experts note a trend of workers returning to Eastern European countries due to improved economic conditions there.

Separately, historian Magnus Brechtken, deputy director of the Institute of Contemporary History in Munich, has observed growing frustration in West Germany regarding economic complaints from the East. Brechtken argues that the economic disparities are rooted in the bankruptcy of the GDR in 1989 rather than modern West German policies. He criticizes the tendency of politicians to use 'feel-good rhetoric' instead of addressing historical facts and the reality of the economic differences between the two regions.

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East Germany · Frank-Walter Steinmeier · Institute of Contemporary History · Institute of the German Economy · Magnus Brechtken

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