Monograph (Authorship)

The Industrial and Economic Region of Lausitz: Review of Current Situation and Outlook

Jan Kluge, Robert Lehmann, Joachim Ragnitz, Felix Rösel
ifo Institut, München, 2014

ifo Dresden Studien / 71

Study commissioned Lausitz Economic Initiative (Wirtschaftsinitiative Lausitz e. V.)
Like all of the regions in Eastern Germany Lausitz, a region that crosses Länder borders in Südbrandenburg and Eastern Saxony and has over a million inhabitants, is currently facing major challenges. Dramatic depopulation and its economic implications will be clearly noticeable in the years ahead: a 36% drop in the working population can be expected in Lausitz by 2030 versus 2010.
“The Industrial and Economic Region of Lausitz” report will provide both a comprehensive review of key economic and demographic data for Lausitz and outline perspectives for the future in view of the drastic changes ahead. The report will highlight the regional significance of industry, and especially the mining and energy sectors.
Moreover, employment figures will be used to identify key industrial branches and core segments like, for example, the chemicals and plastics industry. The insights gained from this review will subsequently be complemented in a second step by a projection of future regional trends in qualified workers and economic growth up to 2030. This projection will reveal that the overall economic development of Lausitz is expected to be negative in the years ahead if productivity growth remains constant. The expert report ends with recommendations on how to strengthen and improve the economic perspectives of Lausitz such as, for example, developing a much stronger focus on existing industrial centres. To achieve this goal, all regional players from politics, administration and business need to work together alongside the federal governments of Saxony and Brandenburg.

JEL Classification: J110, O180, R110