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Michael Grömling IW-Report No. 53 20. October 2020 COVID-19 and the Growth Potential

The lasting economic impact of the COVID-19 pandemic will become apparent in the development of the macroeconomic factors of production – labour, capital, human capital as well as the stock of technical knowledge.

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COVID-19 and the Growth Potential
Michael Grömling IW-Report No. 53 20. October 2020

COVID-19 and the Growth Potential

IW-Report

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

The lasting economic impact of the COVID-19 pandemic will become apparent in the development of the macroeconomic factors of production – labour, capital, human capital as well as the stock of technical knowledge.

Changes in behaviour such as a greater acceptance of technology can strengthen potential output permanently. By contrast, negative effects may arise from growing protectionist attitudes or long-lasting uncertainties and “scarring effects”. In any case, the crisis has induced a technology push. This may be intensified if digitisation gains additional support from investments in infrastructure or if the pandemic heralds a renaissance in the natural sciences – with a corresponding impact on human capital and physical capital as well as on technical knowledge. For the time being, it is unclear what the effects of restructuring and secular structural change will be on potential output. How-ever, dangers are lurking in the acceleration of geopolitical tensions, a misunderstanding of technological sovereignty and increasing government interventions, which as a whole could hamper innovation and investment.

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COVID-19 and the Growth Potential
Michael Grömling IW-Report No. 53 20. October 2020

Michael Grömling: COVID-19 and the Growth Potential

IW-Report

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

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Die Altstadt von Jerusalem
Galina Kolev-Schaefer / Thomas Obst / Thomas Puls IW-Report No. 1 2. January 2024

Effects of the Middle East conflict on the German economy

Beyond the humanitarian crisis associated with the geopolitical conflict in Israel, which affects millions of human lives, the Middle East conflict also leaves lasting marks on economic activity not only in the affected region, but also in Germany and the ...

IW

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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.

IW

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