High Productivity and Low Costs
Labor productivity in the eastern German federal states has doubled since 1991 – with average economic output at around EUR 50 thousand per employee. Productivity remains significantly lower in other eastern European countries which have undergone a similar transformation process to that of Eastern Germany. US companies in particular count their eastern German sites as being among the most productive worldwide.
Economic considerations are uppermost in the minds of companies looking to locate in the new federal states. Attractive rental and property prices and associated costs below those in the west make a compelling business case for Eastern Germany.