Leipzig on the rise: Future index shows big leap forward!

Leipzig on the rise: Future index shows big leap forward!

What is happening in beautiful Saxony? A new report on the economic situation of the regions shows light and shadow. The “Future Index” presented by the consulting firm Prognos in the Handelsblatt on Friday shows Dresden as the clear winner, while Leipzig finds itself in 152nd place at the bottom of the ranking for the over 400 regions examined. Despite this mediocre result, Leipzig has climbed an impressive 182 places over the last two decades, benefiting from an increase in young adults as well as developments in the semiconductor and biotechnology industries.

The metropolis of Leipzig reached its peak in 2019 when it came in at number 104, but since then fast-growing regions have come between the city and the top spots. In contrast, Dresden ranks 38th with very good prospects. Particularly noteworthy are the investments in the semiconductor industry, which give the city a clear boost. Overall, the index shows that East Germany lags behind compared to West Germany, with over two-thirds of East German districts showing future risks. The central challenge remains the demographic development and the shortage of skilled workers in this region, because the gross domestic product per capita in East Germany is below the West German level.

Economic facts and figures

Saxony's Ministry of Economic Affairs recently published the new location report “Saxony as a location in comparison with other regions in 2022”. This detailed brochure offers comprehensive insights into overall economic development, the labor market and much more on almost 80 pages. A look at the numbers reveals that Saxony, with a purchasing power-weighted GDP of 28,300 euros per inhabitant, is 95% of the EU average. By 2021, an increase of over 16% in price-adjusted growth was recorded, which represents the best value along with Thuringia.

The employment situation in Saxony is also positive. With a job density of 508 employees per 1,000 inhabitants, the region has the highest density in eastern Germany. The unemployment rate fell to 5.9% in 2021, representing an impressive 11.8% decline since 2010. A real ray of hope, because the EU-wide recognized unemployment rate is only 3.3%, well below the EU average.

Population development in focus

If you take a closer look at the population development in Saxony, you will notice that Leipzig has recorded an increase of over 18% in recent years since 2011. While the immigration of young adults is increasing in the city centers, there is, on the other hand, a negative internal migration balance that is drawing younger age groups away. In 2022, the centers experienced an increase of 1.6%, partly due to refugee migration.

But there are also challenges. In 2022, the old-age dependency ratio in East Germany will be 48, significantly higher than in West Germany (36). These demographic challenges cannot be ignored, especially when it comes to securing the potential of skilled workers and dealing with age-related social aspects.

It is undisputed that Saxony is undergoing interesting changes. The aim will be to further expand the positive developments and at the same time specifically address the demographic challenges. It will be exciting to see how the municipalities and regions in Saxony will implement this.

For further information, you can read the Prognos report in the Handelsblatt [here](https://www.lvz.de/lokales/leipzig/gute- outlooken-leipzig-holt-beim-zukunftsindex-auf-dresden-bleibt-top-4TWU6PIVDJGVJJTTBR2B7QIQZQ.html?outputType=valid_amp) as well as the location report from the Saxon Ministry of Economic Affairs here and the current demographic data from Destatis here.