IW-Forschungsgruppe Konjunktur German Economic Institute (IW)
IW Forecast for Germany Autumn 2011
Germany’s growth will slow markedly. In spite of the resurgence of financial market problems, a recession seems, nevertheless, improbable. Real GDP will increase by 3 percent in 2011. In 2012, German exports will increase only moderately and dampen corporate investment. Because of the ongoing positive labor market private consumption will continue to buttress the business cycle. In 2012, the German economy will merely grow by 1 ¼ percent. Despite the weakening of the economy there will be more than 41 million employees. The number of registered unemployed will sink to 2.8 million on average. With a deficit of 7 billion euro and a deficit ratio of ½ percent of the GDP the national budget will almost be balanced.
IW-Trends No. 2 11. July 2026 Hubertus Bardt et al.
Why Do Companies Invest in Germany?
The growth of Germany’s capital stock is slowing, as current investment increasingly fails to keep pacewith steadily rising disposals. In particular, private investment – which accounts for well over fourfifths of total gross fixed capital formation – has been alarmingly low in recent years.
Hubertus Bardt / Michael Grömling / Thomas Schleiermacher / Susanne Seyda IW
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