According to an economic forecast by the Ifo Institute in Dresden, the East German economy is growing despite the general economic downturn. Contrary to the nationwide trend, gross domestic product in the east is likely to increase by 0.3 percent this year, according to the institute. In Germany as a whole, economic output is expected to fall by 0.1 percent.
"The service sectors in eastern Germany in particular are expanding strongly, and the weakening industry has less weight here overall," said Joachim Ragnitz, Deputy Director of the Ifo Institute in Dresden. His colleague from Munich, Robert Lehmann, added: "The structural change in the manufacturing industry is also affecting the East German economy, but with less intensity due to its specialization."
