2026 Report Warns Eastern Germany Risks Falling Behind Poland as Convergence Stalls at 85% of West
Updated
Updated · Euronews · May 31
2026 Report Warns Eastern Germany Risks Falling Behind Poland as Convergence Stalls at 85% of West
2 articles · Updated · Euronews · May 31
Eastern Germany’s catch-up with the west is no longer assured, with 2025 GDP in the eastern states at about 85% of the western average and economists warning the gap could widen again.
Private investment is a central weakness: from 2019 to 2023, per-capita investment reached only about three-quarters of western levels, or roughly two-thirds excluding housing and public infrastructure.
Demographics are adding pressure. The working-age population in eastern Germany is projected to fall about 7% by 2035, while labour-force potential in Thuringia and Saxony-Anhalt could shrink by 25%.
Poland has outperformed by using special economic zones, higher subsidies and lighter regulation to attract industry, while eastern Germany remains bound by Germany’s national legal and wage-setting framework.
The report says flagship projects such as Tesla, Infineon, ESMC and CATL have not lifted large parts of the region, where median household wealth was €35,900 in 2023 versus €143,200 in western Germany.
While Poland thrives, why is Eastern Germany’s economy, decades after reunification, falling further behind?
Could the autonomous spirit of medieval trade leagues be the radical solution Eastern Germany needs today?
Eastern Germany's economic convergence with the West has stalled, raising concerns that the gap between the two regions could widen again if decisive action is not taken. Recent data shows the East German economy contracted by 0.1% in 2024, slightly better than the national average, but forecasts predict stagnation in 2025 and only modest growth in 2026. Unemployment in the East remains high and is expected to rise further. These trends highlight the urgent need for targeted policies and investments to prevent further divergence and support long-term economic stability in Eastern Germany.