Leipzig in the upswing: Future index shows a big leap forward!

Leipzig in the upswing: Future index shows a big leap forward!

What is happening in beautiful Saxons? A new report on the economic situation of the regions shows light and shadow. The “Future Index” of the Consulting Company forecast, presented on Friday in the Handelsblatt, produces Dresden as a clear winner, while Leipzig can be found at the end of the ranking for the over 400 regions examined. Despite this mediocre result, Leipzig has made an impressive one in the past two decades and benefited from an increase in young adults and the developments in the semiconductor and biotechnology industry.

The metropolis Leipzig culminated in 2019 when it landed in 104, but since then since then it has been pushing rapidly growing regions between the city and the top positions. In contrast, Dresden ranks 38 with very good perspectives. The investments in the semiconductor industry, which give the city a clear thrust, are particularly noteworthy. Overall, the index shows that East Germany lives up compared to West Germany, with over two thirds of the East German circles that have the 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 numbers

Saxony's Ministry of Economic Affairs has recently published the new location report "Location of Saxony compared to other regions 2022". This detailed brochure offers comprehensive insights into the overall economic development, the labor market and much more. A look at the figures reveals that Saxony with a buying force-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 together with Thuringia.

The employment situation in Saxony is just as positive. With a workplace density of 508 employed people each 1,000 inhabitants, the region has the highest density in East Germany. The unemployment rate fell to 5.9% in 2021, which has been an impressive 11.8% since 2010. A real ray of hope, because the unemployment rate recognized across the EU 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, it is striking that Leipzig has had an increase of over 18% since 2011. While the immigration of young adults in the city centers is increasing, on the other hand, there is a negative internal migration balance that draws younger age groups. In 2022, the centers experienced an increase of 1.6%, which is partly due to escape migration.

But there are also challenges. The old quotient in East Germany was significantly higher in 2022 than in West Germany (36). These demographic challenges are not to be ignored, especially when it comes to securing the potential for skilled workers and coping with age -related social aspects.

The fact that Saxony is in an interesting change is undisputed. The goal will be to further expand the positive developments and at the same time to specifically meet the demographic challenges. How the municipalities and regions in Saxony will implement this remains exciting.

For further information you can use the forecast report in the Handelsblatt here and read the location report of the Saxon Ministry of Economic Affairs here and the current demographic data from Destatis HERE.