DIW Berlin Economic Barometer

Only available in German

What is the DIW Economic Barometer?

Every month, the German Institute for Economic Research issues its DIW Economic Barometer, an indicator of current economic trends in Germany. Based on the growth rate of the real GDP, it reflects the country's macroeconomic development. The DIW Economic Barometer provides an estimate for the real GDP of the last or the current quarter. In this way, it always provides an up-to-date overview of the economic development-a valuable contribution given that Germany's Federal Statistical Office issues its official data with a greater time lag. The DIW Economic Barometer is based on indicators such as production and sales in important economic sectors and is calculated using an econometric method. In addition to the current estimate (the green bar in the figure), the DIW Economic Barometer also comments on the main current influences on the economy.

Currently, this data collection is only available in German. Please refer to our German site for further information.

Descpription of the current  DIW Economic Barometer in German.

DIW Economic Barometer October 2017: the German economy’s golden autumn

The German economy’s strong upswing continues. At 112 points, the Economic Barometer published by the German Institute for Economic Research (DIW Berlin) continues to signal GDP growth that is well above average: 0.7 percent in the third quarter and 0.9 percent in the fourth. “The German economy is heading toward 2018 at full speed,” said Ferdinand Fichtner, head of forecasting at DIW.

According to DIW estimates, industrial production should continue to grow in response to dynamic foreign demand. This will also add some momentum to corporate investments, particularly as business sentiment has recently improved substantially. “After the Bundestag election, many firms appear to be counting on the dawn of a golden era,” added Fichtner. “But the new federal government first has to deliver. Right now, the coalition negotiations are creating the impression that the existing surplus in public budgets is being divided up to serve a range of party-specific interests instead of setting clear priorities and investing in Germany’s future.”

DIW forecasts that private consumption will lose some momentum. Nominal income is continuing its upward surge, but at 1.7 percent inflation will be much higher than it has been in recent years because of energy prices. Instead of plunging, they will tend to rise. The bottom line is that consumers will not have as much extra money in their pockets as they did before.