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.
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 ...
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.
Sarah Lichtenthäler / Adriana Neligan in Intereconomics IW
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.
Hubertus Bardt / Michael Grömling in Advances in Resilient and Sustainable Transport IW
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 ...
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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.
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.
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.
Sarah Lichtenthäler / Adriana Neligan in Intereconomics
IW
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German Economic Institute (IW) 
