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Saxony


 

Economy

Saxony has been considered to have the most vibrant economy among the former GDR states. Its economy grew by 2.1% in 2004, making it the only eastern state to exceed the national average. Nonetheless, unemployment remains high and investment is scarce. Because of these factors, Saxony, along with the rest of the east (excluding Berlin) qualifies as an "Objective 1" development region within the European Union, and thus can receive investment subsidies of up to 30% until 2013. In the interests of encouraging growth, the state government has attempted to develop tourism in the region, notably in the lake district of Lausitz (Economist, Aug. 27, 2005).

Related Topics:
GDR - European Union

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