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September 17, 2007 8:06 pm

Germany’s new economic divide

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As recently as five years ago, a common assumption was that the east of Germany, helped by considerable subsidies, would develop and eventually match the living standards of the west. Well into the second year of the country’s robust economic recovery, however, it is catching up, but not in the expected way.

Instead of developing uniformly, eastern Germany is gradually assuming a long-standing western feature, one which contrasts a wealthy and fast-growing south to a struggling north. Meanwhile, the west’s own north-south divide, which a decade ago was thought to be vanishing, has deepened.

FT.com’s interactive graphic demonstrates Germany’s recent economic development and the future prospects of Germany’s states, using growth and long-term unemployment data.

Related story: The new divide: Germany is split north-south on economic growth

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