Strangers are Essential for the Economic Prosperity of East Germany
In East Germany, as per a report by the Institute of the German Economy (IW), foreign workers play a crucial role in supporting the local economy. The study reveals that over 400,000 individuals without German citizenship were employed in the eastern federal states in 2023, which is a 173,000 increase compared to five years ago. These foreign workers contributed a substantial 5.8% to East Germany's GDP, amounting to 24.6 billion euros. The IW concludes that these foreign employees are essential for the economic growth of East Germany, as the number of German workers in the region decreased by 116,000 between 2018 and 2023.
The IW acknowledges that East Germany has not always had a welcoming reputation, especially in the context of upcoming state elections in three eastern federal states. However, the report highlights that the far-right AfD, which is known for its anti-migrant stance, has potential supporters. Despite this, the IW asserts that foreigners are the backbone of the East German economy.
The IW argumentates that without these new arrivals, the economy would have suffered, but instead, it thrived. Particularly, Saxony benefited the most, with foreign workers contributing approximately 7.9 billion euros to the region's economy. Brandenburg and Thuringia also saw beneficial impacts, with 6.8 billion and 3.9 billion euros respectively, despite having smaller overall economies.
The study by the IW reveals that over the past five years, people from Poland and the Czech Republic have predominantly moved to the east, as well as workers from Romania and Ukraine. These foreigners primarily work in the construction industry, but also hold significant roles in the transport sector and through temporary employment agencies in Germany. The study author, Wido Geis-Thöne, emphasizes that these foreign workers are instrumental in supporting the East German economy. Accordingly, Geis-Thöne stresses the importance of maintaining an open-minded approach to ensure the economic prosperity of the region.
The Commission has commended the IW for its comprehensive report on the role of foreign workers in East Germany's economy. The Commission acknowledges that the findings underscore the significant contribution of foreign workers to the region's economic growth.
