Foto: iStock

Growth and Business Cycle

Foto: iStock

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.

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.

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Authors
Content Type
Michael Grömling

Prof. Dr. Michael Grömling

Head of the Research Group Macroeconomic Analysis and Forecast

Tel+49 221 4981-776

Mailgroemling@iwkoeln.de

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Galina Kolev

Prof. Dr. Galina Kolev

Senior Economist, Head of the Research Group Macroeconomic Analyses and Business Cycles

Tel+49 221 4981-774

Mailkolev@iwkoeln.de

@galina_kolev

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Jürgen Matthes

Jürgen Matthes

Head of the Research Unit International Economics and Economic Outlook

Tel+49 221 4981-754

Mailmatthes@iwkoeln.de

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