ifo Media Center
The ifo Institute invites you to participate in the discussion of interesting economic topics via the Internet. In our ifo Media Center a whole series of remarkable events are available and can be viewed in full length. We also record selected speeches and presentations given by employees or at events and make them available in our Media Center.
Euro 2024: 0,1% Additional Economic Output By Foreign Tourists In Germany In 2nd Quarter
The Euro 2024 is expected to bring Germany an additional billion euros from foreign football tourists. That corresponds to around 0.1% of economic output in the second quarter of the year. However, the effect is expected to only be short-lived.
Increase in Short-Time Work Halted in German Manufacturing
German manufacturing companies responded to the economic slowdown in winter with significantly more short-time work. Although it is likely to remain high in the coming months, it is not expected to worsen further. In the second quarter, 18.8% of manufacturing companies planned to introduce short-time work in the next three months.
Far-right electoral success can undermine joint action in the EU
According to ifo President Clemens Fuest, far-right electoral successes in the EU can undermine joint action on defense, migration policy, and trade policy. Europe can only be successful here if there is a willingness to occasionally put national interests aside and cooperate.
Conversion of Tax Allowances to Credits
If the basic tax-free allowance in income tax in Germany were completely converted to a tax credit, the lower income groups could benefit more from it, but employment would fall. This is the result of a model calculation by the ifo Institute.
Football Championships Barely Improved Sentiment In The German Economy
Sentiment in the German economy has barely improved during World Cups and European Championships. At the time of the 2006 World Cup in Germany, there was initially a sense of anticipation in the ifo economic surveys. During and after the World Cup, however, there were no more effects on expectations, notes ifo-expert Klaus Wohlrabe.
ifo President Fuest: ECB Interest Rate Cut Is Good
ifo President Clemens Fuest welcomes the interest rate cut by the European Central Bank (ECB). “The move makes sense, because inflation in Europe is now heading back toward the target of two percent,” he explains in Munich on Thursday.
German Chemical Industry Confident Again For The First Time
The business climate in the chemical industry in Germany recovered in May and returned to positive territory again for the first time since March 2022. Its index rose to +5.8 points from -5.2 in April. “Confidence is returning to the German chemical industry,” explains ifo industry expert Anna Wolf.
Business Climate Of The Self-Employed In Germany Has Improved
The business climate for the solo self-employed and microenterprises in Germany improved in May, rising to -11,8 points after -13,8 in April. Business fared better, with only a few self-employed expressing dissatisfaction with their current situation. Expectations also brightened up somewhat, although they were still marked by skepticism.
Sentiment In The German Automotive Cooling Down
The business climate in Germany’s automotive industry deteriorated in May, dropping to -8,6 points after -2,4 in April. “Backlash from China to the trade conflict over electric cars with the US and Europe could severely impact business for German automotive manufacturers,” notes ifo-expert Oliver Falck.
Business Climate in German Retail Improves Slightly
The ifo Business Climate in Germany’s retail improved a little in May, finds the latest ifo Institute survey. The index rose to -13.3 points, up from -14.5 points in April. While this reflects slightly better business expectations, the outlook for retailers remains pessimistic.
ifo Business Climate Eastern Germany Rises Further
The barometer of business sentiment for the regional economy in eastern Germany climbed to 92.8 points in May, up from 92.2 points in April. The eastern German companies surveyed provided assessments of their business situation that were somewhat better than the previous month, and they raised their business expectations slightly.
ifo Price Expectations Rise Slightly
The ifo price expectations rose a little to 16.2 points in May, up from 15.2 points in April. In manufacturing and wholesale in particular, slightly more companies plan to raise their prices than in the previous month. In consumer-related industries, by contrast, price expectations declined.
ifo Researcher Potrafke Critical of Germany’s Pension Package
“Freezing the pension level at 48% and suspending the sustainability factor completely ignores the realities in Germany," criticizes ifo researcher Niklas Potrafke regarding the pension package recently adopted by the German government. Demographic change requires a different pension policy.
ifo Employment Barometer Rises
The willingness among companies in Germany to hire new staff has increased slightly. The ifo Employment Barometer rose to 96.3 points in May, up from 96.0 points in April. “Demand for workers remains rather weak,” notes Klaus Wohlrabe, Head of Surveys at ifo.
ifo Business Climate Index remains unchanged (May 2024)
The ifo Business Climate Index in May stayed at 89.3 points. Companies were less satisfied with their current business situation, but expectations brightened. The manufacturing, trade, and construction sectors are recovering, the service sector took a slight hit. Germany’s economy is working its way out of the crisis step by step.
Polling Place Reassignments Reduce Voter Turnout
Assigning voters to new polling place led to a drop in voter turnout of 0.4 percentage points, finds the ifo Institute in a new analysis of elections in Munich. The decline in voter turnout is driven by inattentive citizens who noticed the reassignment too late to switch to mail-in voting.
EU Single Market for Services Could Increase Economic Output by 2.3%
A sweeping removal of barriers in the EU single market for services would increase gross value added by 2.3% or EUR 353 billion permanently (in 2023 prices). The calculations were done for a medium- to long-term time horizon of between ten and twelve years.
German Manufacturing Sees Threat To Its Competitiveness
The competitiveness of German manufacturing within the EU and on global markets has been deteriorating for two years. Companies have reported falling behind in terms of competitiveness within the EU since the third quarter of 2022. The situation is similar on the global markets (outside the EU).
Work Visa Agreements Between EU And Third Countries Could Reduce Asylum Applications
The ifo Institute proposes work visa agreements between the EU and safe third countries as a way to reduce the number of asylum applications and irregular immigration. “This would enable legal and controlled immigration,” notes ifo expert Panu Poutvaara.
Business Climate Of The Self-Employed In Germany Improved
The business climate for solo self-employed and microenterprises in Germany improved somewhat in April, climbing to -13.8 points after -15.6 in March. Dissatisfaction with current business has decreased slightly, as has skepticism regarding expectations for the next six months. The signal coming from service providers is particularly positive.
