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 ...
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 ...
The initial fiscal costs associated with refugee integration are quite high—but as more and more refugees join the labor force, a reduction in ongoing welfare costs and an increase in government revenue will result. Against this background, the Institute for Employment Research (IAB) in Nuremberg and DIW Berlin conducted a joint investigation (funded by the German Federal Ministry of Labor and Social ...
In spite of persisting unfavorable external economic conditions, the German economy’s upward trend continues, with a growth of 1.2 percent expected for the coming year – slightly less than the 1.8 percent growth rate of 2016, a difference primarily due to the fact that 2017 has fewer workdays. A growth rate of 1.6 percent is expected for 2018. Although employment growth has slowed down somewhat since ...
The world economy is gaining momentum after sluggish growth in the first half 2016 – which was primarily due to a weak expansion in the emerging markets – gave way to a slight acceleration. This trend is likely to continue, and will increasingly benefit the developed economies as well. The brightening labor market situation in advanced countries is leading to a higher level of consumer demand, which ...
Facing deflationary threats, the ECB has engaged in several forms of asset purchase programs to fulfill its mandate of maintaining price stability. A main objective of these programs is raising inflation expectations, as these are a main determinant of actual inflation. This study empirically evaluates the effectiveness of these ECB policies in raisinginflation expectations. The results suggest that ...
