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Analysis of Saxony-Anhalt's Economic Situation Ahead of State Election

As Saxony-Anhalt approaches its state election, the far-right AfD party claims the region has been economically neglected. Current data shows higher unemployment and lower median earnings compared to the national average. Despite these claims, the state has seen population growth and a relatively low proportion of foreign nationals among welfare recipients, indicating a complex economic landscape.

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Sven Schulze

Germany's far-right Alternative for Germany (AfD) party has claimed that the eastern state of Saxony-Anhalt has been neglected economically. This claim is being scrutinized as the state approaches its upcoming election. The AfD's local branch has been classified as 'right-wing extremist' by the domestic intelligence agency. Opinion polls indicate that the AfD may be poised to win the election, having previously secured around 20% of the vote in the last state election in 2021, where it has since become the largest opposition party. The state is currently governed by a coalition of the center-right Christian Democrats (CDU), the center-left Social Democrats (SPD), and the Free Democrats (FDP), with Sven Schulze of the CDU serving as state premier.

The AfD's campaign focuses on the assertion that Saxony-Anhalt is lagging behind both socially and economically. Current statistics show that the unemployment rate in Saxony-Anhalt is higher than the national average, and median earnings for full-time employees are lower than the national figures. Of the state's approximately 2.1 million residents, just under 800,000 are employed in jobs that contribute to social security. The chemical industry remains one of the state's major employers, particularly in the chemical triangle around Leuna, Merseburg, and Bitterfeld-Wolfen. Additionally, machinery and plant engineering companies, including those supplying the automotive industry, are significant contributors to the manufacturing sector.

The retail, transport, and hospitality sectors account for about 20% of employment, with tourism being a notable area, particularly in the Harz Mountains and the cities of Wittenberg and Eisleben, as well as UNESCO World Heritage site Quedlinburg.

The perception that eastern German states have not caught up with their western counterparts resonates with voters, contributing to the AfD's support, especially among younger demographics. While it has been suggested that pensions in eastern Germany are lower than in the west, this is no longer accurate. However, the proportion of pensioners in Saxony-Anhalt is slightly above the national average, and many rely solely on state pensions, unlike those in the west who may have additional income from company pensions or private savings.

Saxony-Anhalt has one of the lowest levels of economic output per capita in Germany, at 75% of the national average, and its economic growth has generally lagged behind the national economy in recent years. The AfD has also emphasized immigration as a campaign issue, warning of excessive immigration and foreign influence, despite the relatively low number of non-Germans residing in the state compared to others.

Despite being one of Germany's economically weaker states, Saxony-Anhalt's population has grown in recent years, with more non-Germans moving to the state than leaving since 2016. By the end of 2025, foreign nationals are expected to make up about 9% of the population, which is significantly lower than in North Rhine-Westphalia, Germany's most populous state.

The assertion that 'foreigners are living off taxpayers' is also considered misleading, as Saxony-Anhalt has a relatively low proportion of foreign nationals among potential welfare benefit recipients. Although the political and economic realities may differ from the narratives presented by extremist parties like the AfD, there is a clear trend of increasing support for radical parties. The CDU and SPD are losing ground, with the CDU struggling to maintain its status as a mainstream party and the SPD approaching the 5% threshold, raising concerns about its ability to secure seats in state parliaments.

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Germany: Is Saxony-Anhalt's economy really struggling?

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Analysis of Saxony-Anhalt's Economic Situation Ahead of State Election