DIW Economic Bulletin

Chinese Foreign Direct Investment in Europe Follows Conventional Models

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 ...

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Decentralized Storage Installations Should Be Available for Further Market Interaction: Five Questions for Wolf-Peter Schill

Decentralized Solar Prosumage with Battery Storage: System Orientation Required

Starting from a low level, in recent years the battery-supported self-consumption of solar electricity (solar prosumage) has grown significantly in Germany. Its growth is primarily due to the opposing trends in household electricity prices and feed-in tariffs in conjunction with government incentives for battery storage. Various benefits of solar prosumage speak to its positive potential in the German ...

Ganzes Heft

Spring 2017 Economic Forecast: Seven Questions for Ferdinand Fichtner

German Economy: Strong Employment Growth, Weak Investment Activity: DIW Economic Outlook

The German economy's upward growth trend continues, with the economic output expected to increase by 1.4 percent this year with slightly overloaded capacities. Employment growth remains strong with the creation of 600,000 new jobs, which has in turn led to an increase in private consumption – one of the key growth drivers of the German economy. The higher inflation rates are dampening purchasing power, ...

World Economy Gaining Momentum, Risks Remain High: DIW Economic Outlook

The world economy continues on its upward growth path, with global production expected to grow by 3.7 percent this year and slightly more than that in 2018. The economies in both the developed and the emerging countries are gaining momentum. Solid output growth is expected for the U.S. and euro area over the forecast period; China’s growth rates remain high, though they are declining somewhat; and ...

Despite Uncertainty in the Global Economy, Germany Is on a Solid Growth Path: Editorial

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Rising Income Inequality Inhibits Consumer Demand: Five Questions for Ferdinand Fichtner

How Rising Income Inequality Influenced Economic Growth in Germany

The cumulative growth rate of the German economy since reunification would have been around two percentage points higher if income inequality had remained constant. This is whatsimulations using the DIW Macroeconomic Model have shown. They were made under the assumption that the income distribution dynamics would not be influenced by any feedback effects of economic growth. In 2015, Germany’s real ...

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Improving the Quality of Care for the Elderly Is of High Relevance for all Age Groups: Six Questions for Marco Giesselmann

Policy Goals in the Eyes of the Public: Preservation of the Liberal Democratic Order Remains Most Important

More than just a few politicians and scientists see an imbalance in policy’s primary orientation toward economic goals, especially the Gross Domestic Product (GDP). In view of scientific and public discourses on prosperity, this report analyzes how voting-eligible Germans, the electorate, rated the significance of different policy areas in 2013 and again at the beginning of 2017. It is based on two ...

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A More Balanced Policy Mix Would Be More Successful: Seven Questions for Philipp Engler and Mathias Klein

Austerity Measures Amplified Crisis in Spain, Portugal, and Italy

The fiscal consolidation efforts of Spain, Italy, and Portugal from 2010 to 2014 did not achieve their goal of reducing the debt-to-GDP ratio in any of the three countries. This Economic Bulletin examines why the spending cuts and tax increases, at times drastic, were unsuccessful and perceptibly contributed to sending the three countries back into recession. The sharp decrease in private household ...

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Construction Sector: Full Order Books, Good Growth Prospects

A significant rise in Germany’s construction volume is expected for this year and the next, even if the growth is not as pronounced as it was in 2016. According to DIW Berlin’s latest construction volume calculations, the sum of all new construction and building refurbishments will increase in real terms by 1.6 and 2.4 percent in 2017 and 2018, respectively, from a rate of 2.5 percent in 2016. New ...