DIW Economic Bulletin

German Economy in Good Shape: DIW Economic Outlook

The German economy is in the midst of a robust economic cycle: the number of employed persons has reached historic highs and is still increasing powerfully; private household income is on the rise; and the public coffers are overflowing. Inflation is rising only gradually, partly because capacities are not overburdened. The mood is bright among consumers and firms alike, with economic development distributed ...

The World Economy and the Euro Area: Despite Risks, Global Recovery Is Stabilizing: DIW Economic Outlook

Global economic output is expected to grow by 3.7 percent this year, and with a slightly stronger dynamic in the coming year; both predictions match the figures proposed in DIW Berlin’s spring forecast, even though the year started off somewhat weaker than expected. But overall, economic recovery continues. Despite rising inflation rates, private consumption remains one of the main drivers in the developed ...

German Economy on Track: Editorial

Ganzes Heft

Many Women Just Don’t Feel Like Competing against Others: Seven Questions for Johanna Mollerstrom

The Gender Gap in Competitiveness: Women Shy away from Competing with Others, but Not from Competing with Themselves

Women are less willing than men to compete against others. This gender gap can partially explain the differences between women’s and men’s education and career choices, and the labor market disparities that result. The experiments presented here show that even though women are less willing than men to compete against others, they are just as willing as men are to take on the challenge of improving ...

Ganzes Heft

Real Hourly Wages: Low-Paid Workers Are Not Being Left Behind: Eight Questions for Alexander Kritikos

Hourly Wages in Lower Deciles No Longer Lagging behind When It Comes to Wage Growth

For many years, only better-paid workers benefited from Germany’s real wage increases. In contrast, dependent employees with lower hourly wages suffered substantial losses, while the low-wage sector expanded. Around 2010, these trends came to an end. Now all wage groups benefit from wage increases—even if those in the middle of the distribution lag somewhat behind. At the very least, this new pattern ...

Ganzes Heft

Little Room for Maneuver with Tax Relief in the Medium Term: Interview with Stefan Bach

Income Tax Reform to Relieve Middle Income Households

Completely eliminating the sharp rise in the tax rate for middle income households in Germany by changing personal income tax rates would mean estimated annual losses in tax revenue of 35 billion euros, or 1.1 percent of GDP. Taxpayers with high incomes would also benefit from this type of relief. The ten percent of the population with the highest income would have a relief of around 10.4 billion euros—over ...

Ganzes Heft

Foreign Exchange Market Interventions Take Place Predominantly in Emerging and Developing Countries: Seven Questions for Lukas Menkhoff

Foreign Exchange Market Interventions: A Frequently Used and Effective Tool

Is it common for central banks to intervene in foreign exchange markets in order to influence exchange rates? And if so, is it effective? From a German perspective, these questions seem surprising, since the European Central Bank (ECB) does not intervene in foreign exchange markets—rather, it lets the exchange rates float freely. The situation is very different in the emerging countries: according ...

Ganzes Heft

The Higher Educated, the More Optimistic about the Consequences of Refugee Immigration: Eight Questions for Philipp Eisnecker

In 2016, around One-Third of People in Germany Donated for Refugees and Ten Percent Helped out on Site—yet Concerns Are Mounting

The presence of refugees in Germany and the challenges their integration poses have preoccupied the public for the past two years. According to the latest data of the Socio-Economic Panel (SOEP), many more people in Germany were concerned about migration and xenophobia last year than in 2013. The additional representative results of the Barometer of Public Opinion on Refugees in Germany in 2016 and ...

Ganzes Heft

China's Investment Strategy Is Different for Western and Eastern Europe: Five Questions for Christian Dreger

This report examines China’s strategy for investing in Europe. While investing in Western Europe is primarily about obtaining access to advanced technologies, investing in Central and Eastern Europe is more about establishing a presence in the EU common market and expanding infrastructure—which also fits into the framework of the New Silk Road Initiative. An econometric analysis reveals that the investments ...