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

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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.

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