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IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2012 Sovereign Debt Crisis Slows the German Economy

IW Economic Forecast, Autumn 2012

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Sovereign Debt Crisis Slows the German Economy
IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2012

Sovereign Debt Crisis Slows the German Economy

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

IW Economic Forecast, Autumn 2012

The sovereign debt crisis in the Eurozone has already had a detrimental effect on the German economy. Exports to Eurozone countries are falling, though soaring exports to emerging economies have so far more than compensated for this. Moreover, investment in Germany is on the decline. Consumption is still benefiting from what have so far been positive developments in the labour market. In view of this, the German economy will grow by 1 percent in 2012. An ongoing weakness in investment activity, a temporary flagging of the stimulus from export trade and a levelling off of consumer dynamism are slowing the pace of growth in Germany. In 2013 real GDP will rise by only ¾ percent. In the course of 2013, though, investment will pick up and a reviving global economy will bring new impetus to the German economy. Here, however, job growth and the reduction of unemployment will come almost to a standstill. The unemployment rate will persist at the current 6 ½ percent. Despite weak economic growth in this year and the next, Germany will have an almost balanced national budget.

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Sovereign Debt Crisis Slows the German Economy
IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2012

Sovereign Debt Crisis Slows the German Economy

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

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Competitiveness and transformation
Michael Hüther IW-Policy Paper No. 1 8. January 2025

An agenda for the new legislative period: Competitiveness and transformation

The German business model, based on industry, services, exports, and regional balance, faces significant pressure.

IW

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Michael Grömling IW-Trends No. 4 7. November 2024

Comparing the Intensity of Economic Crises

In 2024, the German economy has stagnated, performing at a level that has barely changed since 2019. Its foreign trade is suffering from geopolitical conflicts and the resulting slowdown in the global economy.

IW

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