Forecasting and Economic Policy

Departmental Focus

The Forecasting and Economic Policy Team analyses and forecasts economic trends in Germany and its most important sales markets. They publish the monthly DIW Economic Barometer, the quarterly DIW Economic Outlook, and participate in the Joint Economic Forecast, the spring and fall reports of the leading economic research institutes. The Team analyses the consequences of economic policy interventions, such as the real economic effects as well as the distributional effects of fiscal and monetary policy stimuli. Moreover, they develop forecasting models using household microdata, such as that from SOEP, in addition to macroeconomic data. The experts on this team are sought-after contacts at ministries, institutes, parliaments, and the press.

The infographic from the DIW Weekly Report 24/2026 shows a time series of Germany’s gross domestic product (GDP) from 2020 to 2027. At the top is the headline stating that the expected economic recovery is weaker than expected in the spring forecast. The central element is a combined chart featuring stacked bars and a line. The bars represent the growth contributions of various components: consumption, investment, exports, and imports. These are color-coded, with positive contributions shown at the top and negative contributions at the bottom. A line runs across the bars, showing the annual change in GDP as a percentage. The y-axis shows percentages ranging from approximately minus 8 to plus 8, while the x-axis shows the years from 2020 to 2027. Specific figures are provided for each year, such as a sharp decline in 2020 of about minus 4.1 percent, a significant recovery in 2021 of around 3.9 percent, and subsequently weaker growth rates—some of which are negative—through 2024. For the following year, 2025, there was 0.2 percent growth; moderate growth of 0.5 percent is forecast for 2026, and 0.8 percent for 2027. Below the graph is the source citation from the German Institute for Economic Research (DIW) as well as a note regarding the license.

DIW-Economic Outlook Summer

Energy price shock slows German economy - Global growth remains moderate

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