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The mandate of the European Central Bank’s monetary policy is to ensure price stability. Interest rate changes by the ECB affect labor costs and the value added of firms. If both dimensions are not equally affected, monetary policy has a distributive effect between workers and shareholders....
Persistent link: https://www.econbiz.de/10012624800
Following the construction boom of recent years in Germany, inflation and supply bottlenecks hit the industry hard in 2022. While nominal construction volume increased by nearly 14 percent, it decreased by two percent when adjusted for inflation. Residential construction, which is urgently...
Persistent link: https://www.econbiz.de/10013532143
The German economy has returned to a recovery course following a slight recession over the winter. Although the war in Ukraine, record inflation, and feared gas shortages have taken their toll on the German economy, a drastic slump failed to materialize. The German economy remained relatively...
Persistent link: https://www.econbiz.de/10014362635
Following the winter recession and stagnation in the second quarter of 2023, the economic upswing is proceeding at a sluggish pace, contrary to expectations over the summer. Weak foreign demand and ongoing inflation have proven to be slowing economic growth. For the time being, private...
Persistent link: https://www.econbiz.de/10014362798
The German economy is stuck in a difficult position as it faces both slow growth as well as structural change. The continuing lack of orders in manufacturing, increasing international competition, and sluggish development in industry-related services are now affecting the labor market and...
Persistent link: https://www.econbiz.de/10015192295
Real construction volume is expected to decline for the fifth year in a row: A decline of nearly four percent is expected for 2024 and it should fall by almost one percent in 2025. However, the construction industry may manage to reverse the trend in 2026, when real construction volume is...
Persistent link: https://www.econbiz.de/10015192300
The Omicron wave of the coronavirus has impacted economies worldwide, resulting in a bleak winter. Although restrictions on economic and public life have been less severe than at the beginning of 2021 in many places-mainly due to the progress of vaccination campaigns-and there are prospects of...
Persistent link: https://www.econbiz.de/10013161604
Immigration to Germany has increased significantly since 2011, primarily due to the immigration of citizens from other euro area countries and those which joined the EU in 2004 and 2007. This increase is mainly attributable to a lack of immigration barriers and the good economic situation on the...
Persistent link: https://www.econbiz.de/10011927693
Although the economic boom in Germany is over, a recession is not looming. The economy is still expected to grow by 1.0 percent this year despite its recent weaker performance. Consumption remains a mainstay of the economy; the average annual increase in the number of employees is likely to be...
Persistent link: https://www.econbiz.de/10011992300
The current global economic environment remains harsh. Global growth rates stagnated in the fourth quarter of 2018, particularly affected by foreign trade. DIW Berlin’s forecast indicates global economic growth of 3.7 percent for 2019 and 3.6 percent for 2020. Positive stimuli are expected...
Persistent link: https://www.econbiz.de/10011992301