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The power struggle between the USA and China is also perceptible in these parts; exports are declining, companies invest less. The German Economic Institute thus adjusts its economic forecast downward.
The changing course of US trade policy since the election of Donald Trump has strengthened the image of free trade in the EU. However, almost 40 percent of EU citizens also support protectionism. This is puzzling, yet lacking knowledge is an important explanation, a new IW study shows. An information campaign is inevitable in order to secure the sustainability of EU Trade policy.
What Germany's response to the corona crisis is and which direction the economy will take is answered by Michael Hüther, director of the German Economic Institute, in an interview with Markets Germany.
Before the economic crisis, European regions with low economic output per inhabitant grew faster than the wealthier ones. The living conditions on the continent became more similar. Since 2010, however, the process of catching-up has been stopped.
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