According to a new study by the German Economic Institute (IW), foreign workers have become an indispensable part of the economies of eastern German states, generating billions of euros in revenue.

"In 2023, some 403,000 people with foreign passports worked in Germany's five eastern states, about 173,000 more than five years prior," the IW concluded, "They alone were responsible for creating €24.6 billion ($27.6 billion) — that equals roughly 5.8% of eastern German gross value creation."

Immigrants 'aiding' eastern German economy

The study's authors claim, "Foreign workers are indispensable for eastern states: between 2018 and 2023 the number of working Germans in the region dropped by 116,000."

In light of upcoming state elections and the continuous rise in the popularity of the far-right, anti-immigrant Alternative for Germany (AfD), the study's authors write: "The AfD tirelessly attacks immigrants while enjoying favorable poll numbers — at the same time, many immigrants live in fear. The irony is that it is immigrants who are aiding the eastern German economy."

The IW says if fewer immigrants had come to the region during the past five years it would have faced an economic downturn rather than expansion.

The study points to Saxony as the state that has profited most from foreign labor (accounting for €7.9 billion of revenue created), followed by Brandenburg (€6.8 billion) and Thuringia (€3.9 billion).

Where do most immigrant workers in eastern Germany come from?  

Most of the immigrants working in the east come from Poland and the Czech Republic say the study's authors, followed by Romania and Ukraine. The study documented that most worked in housing and road construction as well as temporary services.

"Foreign workers help eastern Germany's economy," said co-author Wido Geis-Thöne. "That makes it all the more important for the region to remain open to the rest of the world — that is the only way eastern Germany's economy can remain successful."

js/wd (AFP, Reuters)

While you're here: Every Tuesday, DW editors round up what is happening in German politics and society. You can sign up here for the weekly email newsletter Berlin Briefing.