East Germany has seen a significant economic boost from its foreign workforce, contributing an impressive €10.69 billion to the region's economy since 2018. A recent study by the Institute of the German Economy (IW) highlights the crucial role played by international workers in various sectors across the region.
India emerges as a key source of highly skilled specialists, accounting for 4.5% of this economic contribution. Vietnam, with its historical migration ties to East Germany, contributes 3.1%. Additionally, other Asian countries contribute 6.4%, while EU member states add 9.1%, and the rest of the world accounts for 7.8% of the overall economic growth.
Interestingly, the IW study suggests that if foreign employment levels had remained static at December 2018 figures, the overall contribution would have been higher, reaching €13.97 billion. The increase in foreign employment between 2018 and 2023 has, however, driven this €10.69 billion surge, accounting for 2.5% of the total gross value added to East Germany’s economy.
Sector-wise, foreign workers have made the most significant impact in the construction industry, contributing €2.10 billion. This is followed by the warehousing and transport services sector, which saw a contribution of €1.77 billion, and the temporary employment sector, adding €1.53 billion.
This data underscores the vital role that foreign workers play in bolstering East Germany’s economy, particularly in key industries that are essential to the region's continued growth and development.