Gesperrte Brücken, Schulen ohne funktionstüchtige Heizungen und andere Mängel der öffentlichen Infrastruktur zeigen, dass Deutschland zu wenig investiert.
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Investments are fundamental for entrepreneurial action. The IW-Economist Hubertus Bardt explains in his contribution, how the word market is changing and which investment projects are necessary for the German economy.
German companies’ business operations are increasingly being hampered by infrastructure deficiencies. Following up on their initial 2013 study, the German Economic Institute (IW) used their regular survey on the business cycle to examine how the condition of central infrastructure networks affects companies.
The global economic climate has deteriorated. The protectionist tone of the US administration is provoking a world-wide trade conflict which may well trigger other problems, such as financial crises in China or in Europe.
The German economy remains on an expansion course, with real gross domestic product expected to grow by over 1 ½ percent in 2017 and by 1 ¾ percent in 2018, the lower number of working days acting as a brake on macroeconomic performance in the current year.
2016 has seen an ongoing and dramatic increase in economic and political uncertainty. Besides the growth problems of the larger emerging economies and the as yet unsolved debt and structural problems in Europe, the anticipated exit of the United Kingdom from the EU and the election results in the USA have reduced companies’ long-term planning horizon even further.
Head of the Research Group Macroeconomic Analysis and Forecast
Tel+49 221 4981-776
Mailgroemling@iwkoeln.de
