Far-right AfD gains in east Germany raise concerns over economic stability

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In recent elections in eastern Germany, the far-right Alternative for Germany (AfD) party gained substantial support, becoming the second-largest party in Brandenburg. The Social Democrats (SPD) narrowly won with 30.9% of the vote, while the AfD followed closely with 29.2%. The AfD, classified as a "suspected far-right extremist organization" by Germany's constitutional court, has raised concerns among economists and business leaders.

Experts are concerned that the AfD’s success, particularly its anti-migration stance, could negatively affect the economy in eastern Germany. Marcel Fratzscher, president of the German Institute for Economic Research, warned that skilled workers may leave the region, worsening the existing workforce shortage. In 2023, Germany had 570,000 unfilled jobs, with the issue especially acute in the east, where the population is aging.

According to a survey by the ifo Institute, 84% of economists believe the AfD’s rise could harm the region’s appeal to skilled labor. Some foreign workers are already leaving due to negative sentiment toward immigrants, according to economist Alexander Kritikos from Potsdam University.

Despite these challenges, Brandenburg, which surrounds Berlin, saw 2.1% economic growth last year, driven by investments such as Tesla’s new factory. However, the long-term economic impact of the AfD’s rise remains unclear, and political stability is considered crucial for maintaining investor confidence.