Key facts
- Households in former East Germany hold about 49% of the average wealth of western households.
- Median disposable income in eastern states was about €25,900 in 2024, versus €28,100 in the west.
- Employment rates in the east trail the west by just 1.6 percentage points for working-age individuals.
- Asking rents in eastern states are 30%-40% below the national average.
- East German firms invest around a quarter less per worker than those in the west.
- The east's population has continued to decline since 2015 while the west's has grown.
More than three decades after the reunification of East and West Germany, significant economic disparities persist, particularly in household wealth, despite notable convergence in employment rates and a narrowing income gap. While unemployment rates have largely aligned, with the east at 8.6% and the west at 6.4% in 2025, and employment rates showing only a small difference, the wealth divide remains stark. In 2023, average net household assets in eastern states, including Berlin, stood at €125,500, less than half of the €257,100 recorded in the former western states. This wealth gap is attributed to factors including lower median disposable incomes, with eastern households earning approximately €2,200 less annually than western ones in 2024, and lower private investment per worker in the east. However, lower living costs, especially for housing, partially offset the income disparity. The demographic trend of a shrinking and aging population in the east, coupled with lower birth rates and continued net migration to the west, further exacerbates these challenges. These lingering differences have fueled social divisions and contributed to the rise of the far-right Alternative for Germany (AfD) party in the eastern regions.