Entrepreneurship

East German Economic Forum: ifo Fact Monitor East Germany celebrates premiere at the East German Economic Forum 2025

May 18, 2025. What is the real state of East Germany today? What are the structural differences between East and West? And what does this mean for economic development and the social future of the new federal states? The ifo East Germany Fact Monitor provides answers to these questions for the first time. It will be presented to the public on Monday, May 19, at the East German Economic Forum 2025 (OWF) in Bad Saarow.

Silicon Saxony at the East German Economic Forum (OWF): Risk & resilience - how can the economy become more resilient? The panel included René Reichardt, member of the Silicon Saxony Executive Board. Photo: Silicon Saxony

A differentiated picture instead of blanket assessments

The ifo Fact Monitor shows that eastern Germany is not a uniform economic region. Rather, there are regional differences with above-average potential in some cases. Saxony, for example, has an export ratio of 32 percent, which is above the western German average. In Thuringia, the proportion of industry is on a par with Bavaria. Berlin and Saxony are among the top EU countries in terms of research expenditure. And Brandenburg benefits greatly from the influx of people from the capital region.

In addition, the Fact Monitor sheds light on a variety of topics that are relevant to the economic and social development of eastern Germany. In the area of the economy, for example, the focus is on productivity, export quotas and the industry structure. The labor market and entrepreneurship are examined on the basis of employment rates, wages, start-up activity and business succession issues. In the areas of research and science, innovative strength, the university landscape, the acquisition of third-party funding and the number of patents are examined. Demographic developments such as immigration, ageing and the proportion of foreign residents as well as regional differences are also analyzed. The picture is rounded off with information on real income and quality of life, for example with data on price levels, purchasing power and investment in education.

Saarower Kreis strengthens fact-based perspectives on East Germany’s transformation

The ifo Fact Monitor East Germany was compiled by the ifo Institute, Dresden branch, on behalf of the Central German Foundation for Science and Education. The aim of the monitor is to draw a realistic picture of the economic and social conditions in eastern Germany on the basis of objective structural data. The analysis is not intended to serve clichés, but to differentiate. It is not intended to enable blanket judgments, but to prepare well-founded decisions. The report is aimed at stakeholders from business, politics and civil society who are concerned with the transformation of East Germany. The Saarow Circle plays a central role in the presentation of the Monitor. The initiative was launched at the OWF in 2024 and is an association of committed representatives of East German business associations. The aim of the circle is to actively help shape the future of eastern Germany and to provide economic policy impetus from the region itself with a view to developing value creation.

A contribution to the strategic development of the region For the Saarower Kreis, the monitor is not an end in itself, but a strategic tool. It is intended to help make economic opportunities more visible and to align structural policy requirements and measures on the basis of data. The members of the Saarower Kreis associate the report with a clear message to politicians at federal and state level. Frank Nehring, spokesman for the Saarow Circle, puts it this way: “Eastern Germany is not a homogeneous zone of weakness, but a laboratory for the future. Anyone who takes a closer look will recognize economic dynamism, creative regions and concrete levers. We need more confidence in our own strengths and the courage to think in new ways in terms of economic policy. At the same time, the Saarower Kreis poses specific questions and thus stimulates the economic policy debate. What needs to happen for small companies in eastern Germany to become visible drivers of innovation? How can eastern German universities become genuine innovation centers? What is needed for eastern Germany to become an industrial ecosystem for skilled workers and research that is visible throughout Europe? The members of the Saarower Kreis do not see themselves as an interest group in the traditional sense, but rather as a platform for orientation, discussion and new beginnings. The focus is on dialog.

Under the name “Saarower Dialog”, impulses are to be given and measures initiated to bring new economic and industrial policy concepts into the discussion, the aim of which is to sustainably secure and expand value creation and productivity in eastern Germany.

Availability and further use of the Fact Monitor

The complete ifo Fact Monitor for Eastern Germany can be downloaded from the website of the Central German Foundation for Science and Education. In addition to the analysis, it also contains the underlying data sets. This provides a sound basis for research, strategic planning and political decision-making processes. With its premiere at the OWF 2025, the Saarow Circle is sending a clear signal for a fact-based and future-oriented discussion of the challenges and potential of eastern Germany. The ifo Fact Monitor not only provides figures, but also opens up new perspectives for the work of companies, business associations, clusters and economic policy decision-makers.

Saarower Kreis

The Saarower Kreis is an association of committed players from leading East German business associations. Originating from a discussion round at the East German Economic Forum 2024, the circle has established itself as a platform for dialog, networking and economic policy impetus. Its central aim is to actively shape the economic future of eastern Germany and promote sustainable value creation in the region. Entrepreneurship, personal responsibility and self-efficacy are at the center of its thinking. The Saarower Kreis sees itself as a voice from the region for the region. It makes structural challenges visible, identifies causes and brings solution-oriented players to the table. The aim is to uncover potential, promote economic dynamism and make eastern Germany visible as a creative region in transition. As a driving force and bridge builder, the Saarow Circle helps to combine economic thinking with social responsibility. Representatives of ACOD Automotive Cluster Ostdeutschland e.V., FIOst Frankreich-Initiative Ostdeutschland, Mitteldeutsche Stiftung Wissenschaft und Bildung, NFOst Initiative Nachfolge Ost, Interessengemeinschaft der Unternehmerverbände Ostdeutschlands und Berlin, Nordostchemie-Verbände, OstBV Ostdeutscher Bankenverband e.V. are involved in the Saarower Kreis, ostdeutschland.info, Silicon Saxony e.V., VDMA Ost, VNG AG, VNG-Stiftung.

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