ifo: Germany's Economy Grows in Only Half of Federal States

In the third quarter of 2024, the economy in Germany grew in only 8 out of 16 federal states compared to the previous quarter. According to calculations by the ifo Institute, particularly East German states such as Brandenburg and Mecklenburg-Western Pomerania showed stronger growth than the national average. The sharpest declines in gross domestic product (GDP) were recorded in Hamburg, Bavaria, and Baden-Württemberg. Robert Lehmann, an economist at the ifo Institute, stated, "On one hand, the improvement in consumer confidence and, on the other hand, the issues in industry are causing significant disparities in the growth rates of the federal states." Brandenburg saw the strongest growth in GDP with a 1.1% increase compared to the previous quarter. The state thus continued the recovery observed in prior quarters, recording growth above the average of 1.8% compared to the previous year.