How Has the Covid19 Pandemic Changed Germany's Regions? – Results of the IW Regional Ranking 2022
IW-Trends No. 2 6. June 2022 Johannes Ewald / Vanessa Hünnemeyer / Hanno Kempermann How Has the Covid19 Pandemic Changed Germany's Regions? – Results of the IW Regional Ranking 2022
Over the past two years the Covid19 pandemic has presented the German economy with major challenges, with the personal services sector just as severely affected as manufacturing.
Johannes Ewald / Vanessa Hünnemeyer / Hanno Kempermann German Economic Institute (IW)
Over the past two years the Covid19 pandemic has presented the German economy with major challenges, with the personal services sector just as severely affected as manufacturing.
The IW Regional Ranking 2022 shows the impact of the pandemic on prosperity, economic development and societal participation in Germany’s regions. Although the short-term effects of the pandemic have yet to bring about any profound structural changes, there have been surprising developments in the growth ranking. While Greater Munich continues to surpass all other regions in absolute prosperity, growth in the hitherto strong German south has fallen below the average. By contrast, the previously weaker north and west and the Berlin-Brandenburg conglomeration have now taken a considerable lead in this category. Whereas certain of the IW Regional Ranking’s indicators, such as the female employment rate, have been little influenced by short-term fluctuations, others have proved more sensitive to exogenous shocks. The regional influence of the pandemic is particularly evident in the development of municipal tax revenues due to local authorities’ high dependence on their income from trade tax.
The composition of municipal expenditure in Germany – A consideration over 30 years
The condition of local public finances is an ongoing topic in the financial policy debate. Local deficits have risen again recently, as has the investment backlog. The public debate often focuses on the revenue side of local authorities.
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