Germany: Is Saxony-Anhalt's economy really struggling?
Germany's far-right AfD has long claimed that the eastern state of Saxony-Anhalt has been left behind. Is that really the case? A closer look at the data offers some interesting insights.
The eastern German state of Saxony-Anhalt is facing economic challenges that have caught the attention of observers ahead of a state election. Opinion polls suggest the far-right Alternative for Germany (AfD) could win the election, having traditionally performed well in the region. The Christian Democrats (CDU), Social Democrats (SPD) and Free Democrats (FDP) currently govern Saxony-Anhalt, with Sven Schulze leading the coalition.
Economic statistics paint a concerning picture for the eastern state. Saxony-Anhalt's unemployment rate surpasses the national average, while median earnings for full-time employees lag behind the country's average. Approximately 800,000 of the state's 2.1 million residents are employed, with most jobs covered by social security contributions.
The chemical industry, machinery and plant engineering companies, retail, transport and hospitality sectors, and the Harz Mountains, along with UNESCO World Heritage sites, are key to Saxony-Anhalt's economy.
Despite claims that eastern German states remain behind western counterparts, pension levels in Saxony-Anhalt have caught up with the national average. However, a higher proportion of pensioners in the region, coupled with fewer additional income sources, results in one of the lowest economic output per capita figures in Germany. The state's economy has grown at a slower pace than the national average in recent years.
The AfD has capitalized on the perception of Saxony-Anhalt's economic struggles, emphasizing immigration and foreign influence as campaign issues. While the state has seen an increase in non-German residents in recent years, the net migration balance remains positive, and the proportion of foreign nationals among welfare recipients is relatively low.
The once-dominant CDU and SPD are struggling in the current political climate, with the CDU facing challenges maintaining its broad appeal and the SPD nearing the 5% threshold, potentially limiting its parliamentary representation. As support for radical parties, like the AfD, grows entrenched, the political landscape in Saxony-Anhalt is shifting, leaving the state's future economy uncertain.
Written by urgent.news from DW English (Business)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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