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Experts Expect Inflation to Remain High
Economists worldwide expect a persistently high level for inflation rates, according to the Economic Experts Survey, a quarterly survey of experts conducted by the ifo Institute. For 2025, the economists surveyed anticipate an average global rate of 4.0 percent, which is in line with the expectations of the previous quarter. Expectations for Germany over the next few years are stable at 2.4 percent for 2025 and 2.3 percent for 2026 and 2028.
Birth Rate in Germany Would Have Dropped Even Without the Contraceptive Pill
The birth rate in Germany did not drop due to the introduction of the contraceptive pill. “Demographic change already started before access to the pill became widespread,” says ifo researcher Klara Lehmann. In West Germany, the birth rate fell from 2.45 children per woman (1961) to 1.92 ten years later; in East Germany, from 2.48 (1965) to 1.54 – but the decline there had started before 1964. The pill was therefore more of a contributing factor.
Permanent Depreciation as a Growth Driver
Permanent Depreciation as a Growth Driver Declining balance depreciation under the Investment booster should be made permanent, according to the ifo Schnelldienst. Simulations show that both a cut in corporate tax rates and the introduction of declining balance depreciation increase the capital stock and investments in the long run.
Immediate Tax Program for Investments – Strengthening the Business Location?
The black-red coalition wants to make tax policy a “guarantor of a competitive and growing economy.” At its core is the “Investment Booster,” supplemented by subsidies for electric cars used for business purposes, tax breaks for retained earnings, and expanded subsidy allowances to promote innovation activities by medium-sized companies. The new ifo Schnelldienst discusses the effects and further options.
German Economists Give Negative Assessment After 100 Days of Black/Red Coalition
Economists at German universities are critical of the first 100 days in office of the Black/Red German government from an economic policy perspective. 42% of those surveyed in the Economists Panel give the economic policy measures of the new German government a negative rating. Only a quarter are more positive.
German Industry Continues to Lose Competitiveness
In July, around one in four industrial companies in Germany reported a decline in their competitiveness compared to countries outside the EU. The figure remained high compared to a previous survey in April. There is also no sign of a turnaround in competition within Europe: The share of companies with declining competitiveness compared to other EU member states fell only slightly from 13.4 to 12.0 percent.
ifo Business Climate Rises Slightly (July 2025)
Sentiment among German companies has improved somewhat. The ifo Business Climate Index rose to 88.6 points in July, up from 88.4 points in June. Companies were slightly more satisfied with current business. Their expectations, however, remained largely unchanged. The upturn in the German economy remains sluggish.
Research Data
Research data offered by the EBDC
The Economics & Business Data Center (EBDC) is a combined platform for empirical research in business administration and economics of the Ludwig–Maximilian University of Munich (LMU) and the ifo Institute. It aims to open up new fields for empirical research in business administration and economics.
Here you can find all research datasets offered by the EBDC including documentation as well as the data repository.
ifo Podcast and Explanatory Videos
ifo Podcast “Economy for All”
What moves the economy? The ifo Institute podcast focuses on the most important developments in economic research and economic policy. Every month, we talk to our experts about current events in business, science, and politics and provide background information on the ifo Institute’s latest research findings.
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What fascinates our researchers about their work? What new results can they show? In our explanatory videos "We Explain Economics", we take a look at the current research landscape and prepare the results for the wider public.