East German espionage raised GDP by 7.4 percent in late 1980s

WorldBusiness & Finance
28 Sep 2026 • 12:01 AM MYT
The Manila Times
The Manila Times

One of the longest-running English broadsheets in the Philippines

East German espionage raised GDP by 7.4 percent in late 1980s

EAST Germany’s extensive Cold War economic espionage in the 1970s and 1980s lifted its overall economic output by 7.4 percent at the end of the 1980s, according to a study by the Rockwool Foundation Berlin, seen by Reuters on Sunday.

Industrial value added was 22.3 percent higher due to espionage, equivalent to 20.2 billion East German marks, or 4.1 billion euros ($4.7 billion) in 2020 prices. All estimates refer to 1988, the year before the Berlin Wall fell.

Co-author Adrian Lerche said the findings had present-day relevance as governments tighten export controls, screen foreign investment and seek to protect strategic technologies.

The Stasi, East Germany’s sprawling intelligence service, helped companies obtain scientific and technical information from Western businesses and research institutions. Firms receiving useful intelligence recorded faster productivity growth, invested more and concentrated more on core products.

“Stasi espionage strengthened East Germany’s position within the socialist bloc,” said Albrecht Glitz, co-author of the study. “It did not, however, significantly improve success in Western markets.”

The gains also spread through supplier and customer networks, supporting broader economic effects, the researchers said. Each additional valuable piece of information produced an estimated annual return of about 330,000 euros in 2020 prices.

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