Germany: Widening economic differences between East and West after years of unity

More than thirty years after German reunification, 2025 will see a slight widening of the difference between income levels in the east and west of the country.

According to figures from the Federal Statistical Office, the average net household income in western Germany reached 39.5 thousand euros annually, while in eastern Germany it reached 33.7 thousand euros. This means a gap of 5.8 thousand euros, an increase of 540 euros compared to 2024, when the gap was 5.2 thousand euros.

Looking at the period since 2022, a relatively positive trend emerges, with the gap narrowing from 16.2% to 14.7% in 2025. However, German news agency DPA noted that 2024 was an outlier of 13.9%.

This comparison is based on average net household income, bearing in mind that other sources of income such as interest and rents may also play a role, and are less prevalent in the East.

Experts also draw attention to the fact that rent and living costs are often lower in certain areas of eastern Germany than in the west. Statistics Office data also shows that the situation in the east and west has become more disparate, with the average net household income in the eastern state of Thuringia reaching 34.4 thousand euros last year, which is higher than the western state of Bremen, which recorded 32.7 thousand euros. (Arabic)