German regional economies show growth amid coal phase-out and population shifts

Rheinland-Pfalz reported economic growth of 1.1 percent in the first half of 2026, outpacing the German national average of 0.9 percent. This growth was driven largely by the automotive industry, which saw a 13 percent increase in revenue, and mechanical engineering, which grew by 7.6 percent. The vehicle construction sector experienced a significant 28 percent rise, while the chemical industry grew by 2.7 percent.

In Nordrhein-Westfalen, the region is managing a significant structural shift due to the planned coal phase-out by 2030. Federal Minister Katherina Reiche emphasized that the transition relies on the construction of flexible gas-fired power plants to ensure energy security. To support this transformation, approximately 3.4 billion euros in funding has been allocated for nearly 1,000 projects in the Rhenish mining area, including new data centers planned by Microsoft to support artificial intelligence.

Conversely, Nordrhein-Westfalen is facing a continuing population decline. As of June 30, 2026, the population stood at 17,944,273, a decrease of 0.23 percent compared to the end of 2025. This decline is attributed to a negative migration balance and a birth deficit, where deaths exceeded births by 40,915 people during the first half of the year.