Team
The people behind the ifo Institute offer the very high level of expertise and experience needed to fulfill our research and service mandate.
Joint Economic Forecast Spring Report 2024: German Economy Ailing
The five leading economic research institutes believe that the German economy is in trouble. In their spring report, they have revised their forecast for the current year significantly downward and now only expect economic output to grow by 0.1%.
Covid-19 Economic Assistance In Bavaria Reached All Affected Industries
In Bavaria, Covid-19 bridging aid was received mainly by the many smaller companies with fewer than 50 employees and in those industries particularly affected by the pandemic, finds a study by the ifo commissioned by Chamber of Commerece and Industry (IHK) for Munich and Upper Bavaria.
Innovation in Germany and the EU - A Path of Strength?
Are we still innovative or have other countries long since left us behind? How do Germany and the EU compare internationally and what is needed for a successful innovation policy? Get to know more about these topics in the new issue of the ifo Schnelldienst 4/2024.
Germany’s Shortage of Skilled Workers Eases Slightly
The shortage of skilled workers among companies in Germany has eased somewhat. According to a recent survey, 36.3% of firms are currently suffering from a shortage of qualified workers, down from 38.7% in October 2023. A year ago, it was 43.6%. “The weakening economy is reducing demand for skilled workers in the short term,” explains Klaus Wohlrabe.
Economists Call For Reform Of EU Research Policy
A report by a group of economists from France, Germany and Italy criticizes the EU’s innovation policy and the direction of spending on research and development in Europe and calls for changes. "The continent is caught in a mid-tech trap", warn ifo President Clemens Fuest.
Celebrate with us!
The jubilee year of ifo and CESifo is titled "75 Years of ifo – 75 Stories." Visit us now at celebrate.ifo.de, the anniversary website showcasing people, places, and times that are significant to the history of our institute in the context of our anniversary year. Explore the first batch of multimedia content now and celebrate with us!
Business Climate In German Retail Remains Gloomy
The ifo Business Climate in Germany’s retail deteriorated in February for the third consecutive month. The indicator fell to -18 points, down from -15.2 points in January. Expectations improved only slightly and at a low level. “Consumers are holding back on shopping, which is putting a strain on retailers’ businesses”, explains ifo-expert Patrick Höppner.
ifo Business Climate Eastern Germany Blossoms With The Start Of Spring
The ifo Business Climate Index Eastern Germany rose considerably in March by climbing to 90.0 points, up from 88.6 points in February. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, raising their business expectations slightly as well.
Lack Of Orders Slows Down The German Economy
The order shortage in Germany has worsened and is an obstacle to the economy. In April, 39.5% of manufacturing companies reported a lack of orders, up from 36.9% in January. In the service sector, the proportion rose from 32.1% to 32.4%. “The lack of orders is hampering economic development in Germany,” explains Klaus Wohlrabe.
German Companies Plan To Cut Investment
Companies in Germany have revised their investment plans for the current year downward. The ifo investment expectations fell to -0.1 points in March, down from +1.2 points in November. “Global demand for capital goods and intermediate goods remains weak and uncertainties persist regarding economic policy,” explains ifo-expert Lara Zarges.
Europe Must Invest In Its Own Strength
Europeans should do more for their own economic strength. This is ifo President Clemens Fuest’s recommendation in view of the elections in Europe and the United States. Europe's security and prosperity mustn't depend on the outcome of US presidential elections, he states in a new ifo Viewpoint.
Fewer German Companies Dependent On China
37% of all manufacturing companies in Germany say they are currently dependent on important intermediate products from China. This shows that the level of dependency has fallen, as in February 2022, immediately before the start of the war in Ukraine, the figure was 46%.
ifo Employment Barometer Falls
The ifo Employment Barometer for companies in Germany slipped to 96.0 points in April, down from 96.3 in March. “A lack of orders is causing some companies to put the brakes on hiring,” ifo-expert Klaus Wohlrabe explains. “But service providers in some industries, such as data processing and tourism, are taking people on.”
More Poverty Risk Leads to More Votes for Right-Wing Extremists
According to recent ifo Institute calculations, in Germany, if the proportion of households below the poverty line increases by 1 percentage point, the share of votes for far-right parties in federal elections increases by 0.5 percentage points.
Business Climate in German Retail Improves Markedly
The ifo Business Climate in retail brightened noticeably in March. The indicator for assessments of the current business situation rose to -7.3 points, up from -18.1 points in February. There was a clear improvement in business expectations, too. “Business in the run-up to Easter has apparently brought a ray of hope for many retailers,” explains ifo expert Patrick Höppner.
Half Of Germany’s Residential Construction Companies Are Short On Orders
Residential construction in Germany is experiencing an order shortage. More than half the companies, 55.2%, in this industry reported a lack of orders in April. In March, the figure was 56.2%. “Housebuilders are looking for signs of hope,” notes Klaus Wohlrabe, “but there’s no end to the crisis in sight.”
Economic Experts Expect Slight Decline In Inflation Worldwide
Economic experts from around the world expect inflation rates to decline in the years ahead. This is among the findings of the Economic Experts Survey. The inflation rate worldwide will reach 4.6% in 2024, then 4.4% next year, and 4.0% in 2027. In Germany, inflation for this year is expected to reach 3.1%, in Austria 4.2, and in Switzerland 1.8.
ifo Business Climate Index rises (February 2024)
Sentiment among German companies has brightened somewhat. The ifo Business Climate Index rose to 85.5 points in February, up from 85.2 points in January. This is due to slightly less pessimistic expectations. Assessments of the current situation remained unchanged – positive and negative responses here were nearly in balance. The German economy is stabilizing at a low level.
ifo Business Climate Index rises (March 2024)
Sentiment in German companies has improved noticeably. The ifo Business Climate Index rose to 87.8 points in March, up from 85.7 points in February. In particular, companies’ expectations turned much less pessimistic. Assessments of the current business situation also improved. The German economy glimpses light on the horizon.
Cancellations Hit One In Five Residential Construction Companies In Germany
Cancellations in German residential construction have increased, with 19.6% companies reporting canceled orders. In February, the figure was 17.7%. “The situation in residential construction remains tense,” explains ifo-expert Klaus Wohlrabe. “There aren’t enough new orders to offset the cancellations.”