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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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Who pays, who gets?
Berthold Busch / Björn Kauder / Samina Sultan IW-Report No. 34 12. August 2024

The EU and money: Who pays, who gets?

The German net position fell slightly in 2023 compared to the previous year, from 19.7 billion euros to 17.4 billion euros. However, it is still significantly higher than in the pre-Brexit period.

IW

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Hergestellt in China. Kartons mit Text aus China und chinesischer Flagge auf dem Rollenband.
Jürgen Matthes / Edgar Schmitz IW-Report No. 30 11. June 2024

Competitive pressure from China for German companies

A firm survey conducted in March/April 2024 as part of the IW-Zukunftspanel among around 900 German companies from the manufacturing and industrial services sectors shows that around 350 of the companies surveyed have Chinese competitors in their markets.

IW

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Strategic autonomy and economic security achieve efficiently
Jürgen Matthes IW-Policy Paper No. 3 4. June 2024

Strategic autonomy and economic security achieve efficiently

In this study an analytical scheme is developed to operationalise the objective of strategic autonomy in a cost-effective way.

IW

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Determinants of personnel planning in Germany
Michael Grömling / Stefanie Seele IW-Report No. 27 21. May 2024

Determinants of personnel planning in Germany

The German labor market has been growing since 2005. The dip in the wake of the coronavirus pandemic between 2020 and 2022 is an exception, as the German labor market has reached a record level of 45.9 million people in employment by 2023.

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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Leiter des Clusters Internationale Wirtschaftspolitik, Finanz- und Immobilienmärkte

Jürgen Matthes

Head of International Economic Policy, Financial and Real Estate Markets Research Unit

Tel: +49 221 4981-754 Jürgen Matthes
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Klaus-Heiner Röhl

Dr. Klaus-Heiner Röhl

Senior Economist for SME Policy and Regional Policy

Tel: +49 30 27877-103 Klaus-Heiner Röhl
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The importance of trade between the EU and Mercosur
IW-Policy Paper No. 8 3. September 2024

Between „strategic autonomy” and „turning point”: The importance of trade between the EU and Mercosur

Simon Gerards Iglesias / Marie Krpata* / Ana Helena Palermo Kuss*

This policy paper analyses the geopolitical and economic significance of the EU-Mercosur agreement for the European Union (EU) in the context of the EU's new European Economic Security Strategy.

IW

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Crypto regulation in the EU
IW-Policy Paper No. 7 2. September 2024

Crypto regulation in the EU

Markus Demary / Vera Demary

FC Bayern Munich footballers advertise for the crypto exchange Bitpanda, Crypto.com advertised with rapper Eminem during the NBA playoffs of the Los Angeles Lakers basketball team, whose arena was renamed “Crypto.com Arena” in 2021.

IW

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Who pays, who gets?
IW-Report No. 34 12. August 2024

The EU and money: Who pays, who gets?

Berthold Busch / Björn Kauder / Samina Sultan

The German net position fell slightly in 2023 compared to the previous year, from 19.7 billion euros to 17.4 billion euros. However, it is still significantly higher than in the pre-Brexit period.

IW

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Trump or Harris or ...? What Europe must prepare for
IW-Policy Paper No. 5 23. July 2024

Trump or Harris or ...? What Europe must prepare for

Hubertus Bardt

A few months before the presidential election in the USA, Donald Trump has a good chance of being re-elected. On the Democratic side, the incumbent president has withdrawn his candidacy after a long period of hesitation, while Vice President Kamala Harris is highly likely to run for the Democrats. This means very different policy scenarios for economic policy and international policy issues that are particularly relevant for Europe.

IW

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CO2 Regulation of Road Transport in Europe
Expertise 1. July 2024

Compendium 5.5: CO2 Regulation of Road Transport in Europe

Thomas Puls

With the Compendium CO2 Regulation in Europe, the IW has been providing the interested public with a comprehensive collection of data on the development of CO2 emissions from passenger car traffic in the European Union, as well as on the applicable regulatory framework, since 2015.

IW

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