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Hubertus Bardt / Michael Grömling in Advances in Resilient and Sustainable Transport External Publication 30. March 2023 Supply Chains, Cost and Investments in Times of Multiple Crises

The Russian invasion of Ukraine has significantly clouded the economic outlook in Germany and worsened the investment climate. The investment gap created in the wake of the Covid pandemic will not be closed for the time being.

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Supply Chains, Cost and Investments in Times of Multiple Crises
Hubertus Bardt / Michael Grömling in Advances in Resilient and Sustainable Transport External Publication 30. March 2023

Supply Chains, Cost and Investments in Times of Multiple Crises

German Economic Institute (IW) German Economic Institute (IW)

The Russian invasion of Ukraine has significantly clouded the economic outlook in Germany and worsened the investment climate. The investment gap created in the wake of the Covid pandemic will not be closed for the time being.

This not only weighs on the pace of economic activity, but at the same time creates protracted deficits in the overall economic capital stock and the associated production and productivity potential. The business surveys conducted by the German Economic Institute in summer and autumn 2022 provide an empirical basis for explaining the current weakness in investment. On the one hand, this company data shows the influence of certain factors on general investment activity, which is unaffected by the Ukraine war. Digitalisation and decarbonisation have a positive impact on the level of investment. High labour costs, production problems due to a lack of supplies and, in particular, the prevailing global economic uncertainty, on the other hand, are weighing on the investment climate. Uncertainties regarding energy supply, a lack of employees and the level of energy costs are also dominant barriers to investment. Secondly, the companies were asked whether and how, in their view, these investment determinants are influenced by the war in Ukraine. While the few positive drivers of investment from the companies’ point of view have changed only little, there has been a massive deterioration especially in the already existing barriers to investment: the sharp rise in energy costs, uncertainties regarding energy supply, global uncertainties and disruptions.

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External Publication
Supply Chains, Cost and Investments in Times of Multiple Crises
Hubertus Bardt / Michael Grömling in Advances in Resilient and Sustainable Transport External Publication 30. March 2023

Supply Chains, Cost and Investments in Times of Multiple Crises

German Economic Institute (IW) German Economic Institute (IW)

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Economic and Structural Influences Drive a Trend Reversal
Klaus-Heiner Röhl / Gerit Vogt IW-Trends No. 4 5. December 2023

Corporate Insolvencies on the Increase

After a prolonged decline, the number of corporate insolvencies has begun to rise again. The slight increase in 2022 could be interpreted as a step towards normalisation after the sharp drop experienced during the 2020/21 Covid19 pandemic.

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Jürgen Matthes / Michael Grömling / Markus Demary / Björn Kauder / Berthold Busch / Gero Kunath / Thomas Obst External Publication 25. October 2023

Why Price Stability Matters

As of March 2023, overall infation is declining in Europe. However, core infation levels continue to remain well above the 2% mandate of the European Central Bank (ECB). In fact, the current bout of infation should continue to weaken as and when supply-chain ...

IW

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