Recent data from the Federal Statistical Office (Destatis) reveals a gradual narrowing of the income gap between eastern and western Germany. The figures, initially requested by the Sahra Wagenknecht Alliance (BSW) and reported by German media outlets, illustrate a persistent but diminishing difference 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 marks a slight improvement from 2023, when the gap was €5,559 (15.2 percent).
The disparity was even greater in previous years. In 2022, the median net income in eastern Germany was €29,540 compared to €35,268 in the west – a difference of €5,728 (16.2 percent). The gap widened further in 2021 to €6,026 (17.2 percent), with eastern incomes recorded at €28,956 and western incomes at €34,982. Over the four-year period, the annual income gap has decreased by approximately €700.
Sahra Wagenknecht, leader of the BSW, attributed the reduction not to substantial income growth in eastern Germany, but to comparatively slower income development in the west. She argued that recent nominal income increases have been insufficient to offset the impact of significant price increases in food and energy across the country. “Inflation is eroding incomes” she stated, suggesting that overall purchasing power and wealth for German citizens have declined since the start of the Ukraine conflict. She added that the apparent narrowing of the income gap in the east is primarily due to the magnitude of this decline being less pronounced there.
It is important to note that these figures represent median net incomes and do not fully account for the effects of inflation.
Looking ahead, Wagenknecht expressed concern that further reductions in social programs, purportedly to fund increased military spending, could negatively impact citizens’ financial stability, with potential implications for the persistent east-west income disparity.
