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  1. Credit Constraints Decline Slightly

    teaserImage Credit constraints for German trade and industry declined from 15.0 percent last month to 14.9 percent in September. This figure represents the share of companies reporting problems accessing bank credit. This marked the first drop in credit constraints after three consecutive increases. German companies continue to experience no difficulties in accessing bank credit. Details

  2. German Manufacturing: Willingness to Invest Rises

    teaserImage German manufacturers increased their investments by 2% in 2015, according to the results of the latest Ifo Investment Survey. Manufacturers plan to increase their expenditure on investment by 7% (real: 6%). The main target of investment activity on 2015 was capacity expansion and will remain so in 2016. Details

  3. Reform of Property Tax: Fairer Distribution of Tax Burden or Cost Explosion?

    teaserImage At the beginning of June 2016 a large majority approved a German Federal Council Initiative for a property tax reform that was nevertheless rejected by Bavaria and Hamburg. Will the proposal lead to a fairer distribution of the tax burden or to a cost explosion? This issue is discussed in the ifo Schnelldienst 18/2016 by Markus Söder, Bavarian State Minister of Finance and State Development, Thomas Schäfer, Hessen’s Minister of Finance, Wolfram Scheffler, University of Erlangen-Nürnberg, Gisela Färber, Deutsche Universität für Verwaltungswissenschaften, Speyer, Dirk Löhr, Hochschule Trier, Helmut Dedy, Deutscher Städtetag, Ralph Henger and Thilo Schaefer, Institut der deutschen Wirtschaft Köln, and Peter Tschentscher, Financial Affairs Senator of the Free Hanseatic City of Hamburg. Details

  4. Joint Economic Forecast: German economy on track – economic policy needs to be realigned

    teaserImage The German economy is experiencing a moderate recovery: the GDP is expected to grow by 1.9 percent this year, 1.4 percent next year, and 1.6 percent in 2018. Over the course of the forecast period, capacity utilization will be somewhat higher than the long-term average. Details

  5. Ifo Business Climate Index for Eastern Germany Rises

    teaserImage The Ifo Business Climate for the Eastern German Länder brightened significantly in September compared to the previous month. Assessments of the current business situation and business expectations improved considerably, after deteriorating considerably in August. Overall, the business climate index for eastern Germany has been fluctuating at around the same level for a year. Details

  6. German Firms Continue Recruitment Drive

    teaserImage German companies are planning to recruit a higher number of employees. The Ifo Employment Barometer rose to 110.1 index points in September from 108.6 points last month, marking its third consecutive upturn. Companies in nearly all branches are looking to hire additional staff. Details

  7. German Manufacturers’ Export Expectations Climb

    teaserImage German manufacturers expect additional stimuli from abroad. Their export expectations soared from 4.8 balance points in August to 8.6 balance points in September, reaching their highest level since December 2015. The Brexit vote only appears to have had a short-lived shock impact on German exporters. Details

  8. Ifo Business Climate Improves Markedly

    teaserImage Sentiment in the German economy improved considerably this month. The Ifo Business Climate Index rose from 106.3 points (seasonally-adjusted) in August to 109.5 points in September, reaching its highest level since May 2014. Companies are clearly more optimistic about the months ahead. They are also more satisfied with their current business situation. The German economy is expecting a golden autumn. Details

  9. German Service Sector: Ifo Business Climate Indicator for the Service Sector Rises

    teaserImage In the service sector the mood continued to brighten. The business climate indicator rose from 29.8 balance points in August to 32.2 balance points in September. Companies’ assessments of the current business situation were even more favourable than last month and their business expectations also improved. In line with these developments, service providers one again plan to recruit more staff. Details

  10. Ifo Export Climate Falls Significantly

    teaserImage The Ifo Export Climate fell from 0.27 index points in July to 0.08 points in August. The drop in the climate was due to a significant deterioration in corporate and consumer confidence abroad. Price competitiveness also weakened compared to the previous month, which negatively impacted the climate. Details

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