The German Economy is Growing in Only Half of the Federal States

In the third quarter of 2024, economic output grew only in eight of the sixteen German federal states compared to the previous quarter, according to new calculations by the ifo Institute. Eastern German states in particular, such as Brandenburg and Mecklenburg-Western Pomerania, expanded more strongly than the national average. The sharpest declines in gross domestic product were recorded in Hamburg, Bavaria and Baden-Württemberg. “The improvement in consumer sentiment on the one hand and the problems in industry on the other are causing the growth rates of the federal states to diverge significantly,” says Robert Lehmann, economic expert at the ifo Institute, summarizing the results.

Brandenburg saw the strongest growth in gross domestic product, which was up 1.1% on the previous quarter. The state thus continued the recovery it had seen the previous quarters and also recorded above-average growth of 1.8% compared to the previous year. Compared to the previous year, Mecklenburg-Western Pomerania even leads the field with 3.3%. Hamburg brought up the rear in the third quarter. Economic output there fell by 0.9% compared to the previous quarter, hence 1.1% lower than in the previous year. In Bavaria and Baden-Württemberg, gross domestic product fell by 0.4% and 0.6% respectively compared to the previous quarter, and by 0.9% and 1.3% compared to the previous year. The strongest decline in economic output compared to the previous year was recorded by the federal states of Bremen and Schleswig-Holstein, each with a drop of 1.9%.