A prospering economy raises the standard of living of the population, creates jobs and fills the state coffers, from which tasks such as education, environmental protection and social security are financed.
About the topic
Over the past 60 years, the social market economy has enabled the citizens of the Federal Republic to increase their nominal income fivefold on average. Even though prosperity has grown considerably over the long term, economic setbacks have had to be endured time and again, because economic growth does not proceed uniformly, but in waves. The yardsticks for economic development include consumption, public and private investment and gross domestic product. A positive economic trend with high growth rates and increasing employment is followed by a downturn with low growth and fewer people in work.
The Institute of the German Economy monitors the current economic situation in Germany and economic developments in other countries using various instruments and regularly publishes economic forecasts. In this way, the IW helps to improve the basis for decision-making in politics and business.
IW-Report No. 39 6. October 2026 Samina Sultan / Jürgen Matthes
German Foreign Investment and the debate over Germany as a business location
Geopolitical pressure and the debate over Germany’s competitiveness make it necessary to develop a more precise understanding of German foreign direct investment. This report provides a comprehensive empirical analysis and also examines the implications for Germany as a business location.
IW-Report No. 21 22. July 2026 Simon Gerards Iglesias / Nicolas Reeves*
Trade and Cooperation Between the EU and the Gulf States
Driven especially by the policies of US President Donald Trump, rising global economic fragmentation and geopolitical disorder have lent renewed strategic importance to the prospective free trade agreement (FTA) between the European Union (EU) and the Gulf Cooperation Council (GCC).
IW-Policy Paper No. 7 13. July 2026 Jürgen Matthes
Free and Fair Trade Club to build Middle Power Weight
This paper proposes that the EU should build a cooperation platform together with the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership).
IW-Report No. 32 3. July 2026 Galina Kolev-Schaefer / Samina Sultan
Transatlantic trade at a crossroads
As the US celebrates a quarter of a millennium of independence, transatlantic trade relations stand at a crossroads. The year 2025 was marked by the introduction of unprecedented tariffs by the US administration.
Research Unit: International Economic Policy, Financial and Real Estate Markets
A prospering economy raises the standard of living of the population, creates jobs and fills the state coffers, from which tasks such as education, environmental protection and social security are financed.
The German Economic Institute (IW) and Frontier Economics are pleased to invite you to a rapporteur & stakeholder workshop on the Industrial Accelerator Act (IAA) in Brussels.
Universal entitlement, unequal provision: childcare in segregated German cities
Matthias Diermeier / Jan Engler* / Melinda Fremerey / Leon Wansleben* in Journal of Social Policy
One mechanism driving persistent inequalities in childcare provision, despite rising investments and a substantial expansion of childcare facilities, may consist in the locational choices of providers, who eschew poorer neighbourhoods.
A Comparison of Public Revenues Across the Federal States
Björn Kauder
To ensure equivalent living conditions, the federal government influences the revenues of the states and municipalities. Under the fiscal equalization system, financially weak states receive surpluses in the distribution of sales tax revenues, while financially strong states must accept shortfalls.
German Foreign Investment and the debate over Germany as a business location
Samina Sultan / Jürgen Matthes
Geopolitical pressure and the debate over Germany’s competitiveness make it necessary to develop a more precise understanding of German foreign direct investment. This report provides a comprehensive empirical analysis and also examines the implications for Germany as a business location.
Event
28. September 2026
Sandra Parthie / Alexander Radunz
Online-Veranstaltungsreihe „Von Brüssel nach Berlin”: Regionalentwicklung und Industriepolitik
Wir laden Sie herzlich zu einer weiteren Online-Veranstaltung unserer Veranstaltungsreihe „Von Brüssel nach Berlin“ ein. Mit ihr wollen wir in loser Folge Themen aus der europäischen in die deutsche Hauptstadt tragen.
Making Apprenticeships a Success: From Marketing to Hiring
Paula Risius / Dirk Werner / Philip Herzer / Fritz Orange / Regina Flake / Franziska Arndt / Yasin Küçükyavuz / Edgar Schmitz
In-company vocational training is a key factor in securing skilled labour. The first step in investing in future employees is to approach and recruit new apprentices. For many companies, filling the apprenticeship positions they offer is a challenge.
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