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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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Determinants of personnel planning in Germany
Michael Grömling / Stefanie Seele IW-Report No. 27 21. May 2024

Determinants of personnel planning in Germany

The German labor market has been growing since 2005. The dip in the wake of the coronavirus pandemic between 2020 and 2022 is an exception, as the German labor market has reached a record level of 45.9 million people in employment by 2023.

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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 ...

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