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.
Growth and Business Cycle

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)

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 ...
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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.
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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.
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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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Our Experts

Prof. Dr. Michael Grömling
Head of Macroeconomic and the Business Cycle Research Unit
Tel: +49 221 4981-776 Mail: groemling@iwkoeln.de
Prof. Dr. Galina Kolev-Schaefer
Senior Economist
Tel: +49 221 4981-774 Mail: kolev@iwkoeln.de @galina_kolevAll news
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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 level.
IW
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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.
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