A new study by the Institut der deutschen Wirtschaft (IW) reveals that the economy of eastern Germany has reached only 79 percent of the economic level of West Germany. The research indicates that progress in closing the gap has stalled, and in some areas, conditions are actually worsening. Researchers identify demographics as the biggest risk factor hindering further economic development in eastern Germany. The study highlights a concerning lack of catch-up growth, despite decades of efforts to bridge the economic divide following reunification. This stagnation raises questions about the long-term economic prospects for the region and the sustainability of its growth. The IW study underscores the urgent need for policies addressing demographic shifts and fostering economic resilience in eastern Germany.