Does Eastern Germany differ significantly from Western part in economic terms? How have new Bundesländer been developing over past twenty years? How fast has East been catching up with West? What could have hampered convergence? How today are German states equipped with factors determining future growth? How the new Bundeslander performed do compared with the old ones? This paper seeks to address above mentioned questions. It offers a comprehensive review of key economic developments of two decades of reunited Germany. Particularly it examines current economic landscape; investigates convergence processes taking place since reunification and tries to identify most likely impediments hampering full catching up. Finally, it aims at assessing contemporary growth potential of German states. With respect to the starting point - poor performance of East Germany back in 1990 the progress made and results achieved are impressive. Though, comparing the situation with Western part of the country - significant discrepancies continue to exist. Certainly, assessment of the last twenty years of reunited Germany hinges much upon perspective taken. Two decades after Berlin Wall Fall opinions on economic consequences of reunification are more balanced, since 'much has been achieved, but much still needs to be done'.
Financed by the National Centre for Research and Development under grant No. SP/I/1/77065/10 by the strategic scientific research and experimental development program:
SYNAT - “Interdisciplinary System for Interactive Scientific and Scientific-Technical Information”.