The Economic Barometer of the German Insitute for Economic Research (DIW Berlin) remains high but is signaling a weakening of the growth rate. It reached a score of 126 points in the first quarter and 121 points in the second quarter, well above the 100-point mark that stands for average growth. more

The social services sector has experienced growth at a far above-average pace in the past, and employment has even accelerated since the middle of the past decade. This is due to a strong increase in demand for this sector's services as a result of an aging society and from increasing tasks to solve ... more

European banking landscape between diversity, competition and concentration In ecology, bio-diverse systems are considered to be particularly resilient. Biodiversity increases the ability to absorb shocks as well as the likelihood of returning to stable conditions without external interventions. ... more

Press release of the project group "Gemeinschaftsdiagnose": German Institute for Economic Research (DIW Berlin), Halle Institute for Economic Research (IWH), ifo Institute, Kiel Institute for the World Economy (IfW), RWI - Leibniz Institute for Economic Research more

On what and to what extent private households in Germany spend money varies significantly depending on employment status, income, and age. As this study based on the most current official sample survey of income and expenditure from 2013 shows, unemployed households on average spend over half of ... more

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The social services sector has experienced growth at a far above-average pace in the past, and employment has even accelerated since the middle of the past decade. This is due to a strong increase in demand for this sector's services as a result of an aging society and from increasing tasks to solve problems in families. The influx of refugees has also affected demand. Almost everywhere in the EU, the social services sector is being strongly expanded. The sector's structures are similar across countries: very marked labor intensiveness and a wage level significantly below the national average, resulting in low measured productivity. In Germany, the gap between the wages in the social services sector and the average wage level is especially large. In part, the gap is explained by the fact that a relatively large number of unskilled workers are employed in the social services. However, skilled workers are also paid comparatively little. While wages in the social services sector have risen relatively strongly recently, there is still the problem of finding qualified people to work in what is likely to be a rapidly growing industry. Society must therefore ask itself how much value it wants to place on a sufficient supply of social services in the future, especially in regard to caretakers.

On what and to what extent private households in Germany spend money varies significantly depending on employment status, income, and age. As this study based on the most current official sample survey of income and expenditure from 2013 shows, unemployed households on average spend over half of their income on basic needs such as living and food expenses while unemployed people living alone spend almost two-thirds on basic needs. Employed and retired households with multiple adults, on the other hand, spend only one-third of their income on living and food expenses. Model calculations show that recent price increases of goods and services have affected all households to a similar degree. Before 2013, low-income households were slightly more affected than others due to their consumption patterns. The savings rate also depends on employment status, income, and age. While low-income households even go into debt, many other households are sometimes saving 20 percent or more of their income. On average, every household saved a good 17 percent of their income in 2013.

To accompany the economic upturn in the U.S., the Federal Reserve Bank has been raising its benchmark interest rate incrementally. In an increasingly globalized world in which the American economy plays a key role, an action like this has spillover effects on the international level. Based on a dynamic factor model, the present study shows that the member states of the euro area—Germany in particular—can temporarily benefit from a restrictive U.S. monetary policy. The devaluation of the euro against the U.S. dollar will improve the euro area’s balance of trade and trigger an economic upturn, primarily in the member states in which the U.S. has captured a substantial portion of exports.