High Productivity and Low Costs

© Getty Images/Cultura RF

High Productivity and Low Costs

The new federal states in East Germany are playing a crucial part in the German market. As a breeding ground for hundreds of new start-ups, the region is attracting more investors than ever.

Workers in the area are dedicated to their craft, providing a strong foundation for many developing and established businesses. Labor productivity in the eastern German federal states has doubled since 1991 with an average economic output at around EUR 50,000 per employee.

Productivity remains significantly lower in other eastern European countries which have undergone a similar transformation process to that of Eastern Germany.

The high productivity of these employees contributed to a GDP of nearly EUR 350 billion in 2016. US companies in particular count their eastern German sites as being among the most productive worldwide.

Economic considerations play an imperative role in the decision-making process behind selecting a business location. While productivity in the eastern German federal states is extremely high, attractive rental and property prices as well as low associated costs make a compelling case for locating your business in the eastern German federal states.


Silke Poppe Silke Poppe | © GTAI

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