Economic Experts: The Gains of AfD and BSW Negatively Impact the Economic Growth
Based on a study conducted by the Ifo Institute, economists have generally agreed that the significant election victories of the AfD and BSW in Thuringia and Saxony will adversely affect the economic growth in these regions. Experts have voiced concerns that highly skilled workers might steer clear of both states in the future due to these election results.
Sixty-seven percent of experts anticipate a detrimental impact on the economy in Saxony as a result of the election outcomes, as per the Ifo Institute's survey involving 185 economics professors. The figure is even higher for Thuringia, at 74 percent.
Just 28 percent of experts view the September election outcome in Saxony as neutral, and 21 percent for Thuringia. Positive effects are expected by an extremely small number of experts. "The survey findings emphasize how decisive election results are in shaping economic forecasts," said Niklas Potrafke, head of the Ifo Center for Public Finance and Political Economy. "The consensus among economists that the boost of far-right parties would severely hamper the economic standing should serve as a wake-up call for the populace."
A majority (84 percent) fears that the rise of the AfD might make these states less appealing for skilled workers. The majority (62 percent) of respondents thinks that the BSW's election success will predominantly have negative effects on companies' investment decisions in Saxony. "The effects of the BSW's election victory on economic development are perceived as slightly less damaging compared to the AfD," said Ifo researcher Aaron Günther.
For the first time, the AfD emerged as the strongest political force in a state election in Thuringia, securing 32.8 percent of the votes. The alliance led by Sahra Wagenknecht (BSW) came in second with 15.8 percent. In Saxony, the AfD finished second with 30.6 percent, after the CDU (31.9 percent), while the BSW secured 11.8 percent. In both states, the formation of a government is expected to be a challenging task.
Following the study, 67% of economists predict a negative impact on the economy in Saxony due to the Elections to the Landtag of Saxony, according to the Ifo Institute's survey. The majority of experts (84%) also voice concerns that the rise of the AfD might make these states less appealing for skilled workers.
