Growth and Business Cycle

Over the past 60 years the Federal Republic’s social market economy has enabled its citizens to quintuple their average income. Although the long-term growth in prosperity has been considerable, there have been repeated economic setbacks to be overcome, as economies tend to develop not evenly but in waves. An economic boom with high growth rates and rising employment is followed by a downturn with low growth rates and fewer people in work. The IW uses a variety of instruments to keep a close eye on these cycles and publishes regular economic forecasts. In this way, the IW provides political and business leaders with a sound basis for their decision-making.