Recent data from the Federal Statistical Office (Destatis) indicates a gradual narrowing of the income gap between eastern and western Germany, though significant disparities persist. The figures, obtained by the “Alliance Sahra Wagenknecht” (BSW) and reported by various German media outlets, reveal ongoing differences in disposable income.
In 2024, the median net household income in eastern Germany stood at €32,833 annually, compared to €38,127 in western Germany. This represents a difference of €5,294, or 13.9 percent. This margin is noticeably smaller than in 2023, when the gap was €5,559 or 15.2 percent.
The disparity was even larger in previous years. In 2022, the income difference was €5,728 or 16.2 percent and in 2021, it reached €6,026 or 17.2 percent. This signifies a reduction of approximately €700 in the annual income gap over the past four years.
Sahra Wagenknecht, leader of BSW, emphasized that this narrowing of the gap is not a sign of substantial income growth in eastern Germany, but rather a consequence of comparatively slower income development in the west. She argues that rising inflation has eroded purchasing power across the country, mitigating any gains from nominal income increases. While the effect is somewhat lessened in the east, it contributes to the closing of the income difference.
It is important to note that the figures presented do not account for the impact of inflation. The data suggests that incomes in the east have risen at a faster rate than those in the west.
Ms. Wagenknecht expressed concerns about a potential downturn in the future, linking it to planned cuts in social programs designed to fund increased military spending. She predicts that these measures could further diminish the financial well-being of citizens and potentially obscure progress made in bridging the East-West income divide, ultimately resulting in a net loss of prosperity for the nation.