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Growth and Business Cycle

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.

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

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Lindner's ideas have merit
Jürgen Matthes / Samina Sultan IW-Kurzbericht No. 29 25. April 2023

Reform of EU-fiscal rules: Lindner's ideas have merit

The German government's proposal to introduce a fixed limit on government spending growth for highly indebted member states in the course of the reform of the Stability and Growth Pact makes sense. Given the macroeconomic environment, such a minimum requirement does not appear overambitious. This would ensure a steady reduction in the government deficit and debt ...

IW

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Sarah Lichtenthäler / Adriana Neligan in Intereconomics External Publication 31. March 2023

How Circular Are Businesses in Germany?

A low-carbon economy could be more readily achieved by improving resource efficiency and thinking in cycles. Consequently, we need a new understanding of economic activity and an alternative approach to raw materials.

IW

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Hubertus Bardt / Michael Grömling in Advances in Resilient and Sustainable Transport External Publication 30. March 2023

Supply Chains, Cost and Investments in Times of Multiple Crises

The Russian invasion of Ukraine has significantly clouded the economic outlook in Germany and worsened the investment climate. The investment gap created in the wake of the Covid pandemic will not be closed for the time being.

IW

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China's dependence on the West for imports and technologies
Simon Gerards Iglesias / Jürgen Matthes IW-Report No. 15 6. March 2023

China's dependence on the West for imports and technologies

There are mutual dependencies between China and the West that have the potential to result in high economic costs for both sides in the event of a geopolitical conflict. Should China actually plan an invasion of Taiwan, the West would be considerably affected ...

IW

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Michael Grömling

Prof. Dr. Michael Grömling

Head of Macroeconomic and the Business Cycle Research Unit

Tel: +49 221 4981-776
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Jürgen Matthes

Jürgen Matthes

Head of Global and Regional Markets Research Unit

Tel: +49 221 4981-754
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Dr. Klaus-Heiner Röhl

Senior Economist for SME Policy and Regional Policy

Tel: +49 30 27877-103
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13. Jun 13. Jun
Philipp Saueracker Event 13. June 2023

Europe’s Digital Decade: how to reach a skilled workforce in 2030 to succeed in the digital transformation?

At the beginning of this year, the European Commission launched the first cycle of the Digital Decade policy program.

IW

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23. May 23. May
Sandra Parthie Event 23. May 2023

Live Stream: Net-Zero Industry Act: Europäische Antwort auf den IRA?

Mit dem „Net-Zero Industry Act” will die Europäische Kommission den Ausbau sauberer Technologien in der EU gezielt fördern, damit sie bis 2030 mindestens 40% des Bedarfs der Union abdecken.

IW

Read study
Lindner's ideas have merit
IW-Kurzbericht No. 29 25. April 2023

Reform of EU-fiscal rules: Lindner's ideas have merit

Jürgen Matthes / Samina Sultan

The German government's proposal to introduce a fixed limit on government spending growth for highly indebted member states in the course of the reform of the Stability and Growth Pact makes sense. Given the macroeconomic environment, such a minimum requirement does not appear overambitious. This would ensure a steady reduction in the government deficit and debt level.

IW

Read study
External Publication
How Circular Are Businesses in Germany?
External Publication 31. March 2023

How Circular Are Businesses in Germany?

Sarah Lichtenthäler / Adriana Neligan in Intereconomics

A low-carbon economy could be more readily achieved by improving resource efficiency and thinking in cycles. Consequently, we need a new understanding of economic activity and an alternative approach to raw materials.

IW

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