Team
The people behind the ifo Institute offer the very high level of expertise and experience needed to fulfill our research and service mandate.
ifo Employment Barometer Tumbles (March 2022)
The willingness among companies in Germany to hire new staff has taken a knock. The ifo Employment Barometer fell to 102.1 points in March, down from 104.3 points in February. This is its lowest level since May 2021. The current high level of uncertainty in the economy due to Russia’s attack on Ukraine is making companies more cautious when it comes to personnel planning. However, there are no signs of an increase in unemployment at this time.
ifo Economic Forecast Spring 2023: German Economy Stagnating
Price-adjusted GDP will stagnate at around the prior-year level this year (−0.1%) and increase by 1.7% next year. At 6.2% on average, the inflation rate in 2023 will be only slightly lower than a year earlier. The rate is not expected to fall to 2.2% until next year.
ifo Employment Barometer Rises (January 2020)
German companies are once again looking to intensify their recruitment efforts. The ifo Employment Barometer rose to 99.7 points in January after measuring 98.9 points in December. This is its highest value since June 2019. The German labor market is starting the new year in an optimistic mood.
Germany: ifo Export Expectations Much Worse (November 2020)
Sentiment among German exporters has deteriorated markedly. The ifo Export Expectations for manufacturing fell from plus 7.0 points to minus 2.1 points in November. One factor in particular that is dragging down the export business is how intense the second wave of coronavirus sweeping across many European countries is.
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,” says Klaus Wohlrabe, Head of Surveys at ifo. “Almost all industries are affected.”
Retailers Expect Little Help from Christmas Sales
The business situation for Germany’s retailers has improved somewhat. The indicator rose from -13.5 points* in October to -8.8 points in November. According to the latest ifo survey, this is the first increase in three months. “Despite the slightly improved mood among retailers, demand – which has been weak all year – remains a challenge even in the period of strong sales during the run-up to Christmas,” says ifo expert Patrick Höppner. Christmas business is therefore unlikely to provide a surprisingly strong boost this year. Expectations for the coming months remain pessimistic.
ifo Business Climate Index Eastern Germany Falls Further (November 2021)
Sentiment among companies in eastern Germany deteriorated noticeably in November. The ifo Business Climate Index for the entire regional economy continued to slide, falling to 97.4 points, down from 98.7 points in October. Participating companies reported a marked decline in their assessments of the current situation. At the same time, their expectations dropped somewhat compared to the previous month.
Eurozone Economic Outlook: Eurozone GDP starts to recover (September 2020)
In the second quarter, global economic activity declined sharply due to COVID-19 pandemic containment measures. International merchandise trade decreased in volume by historic 12.5%, despite a rebound in June (+7.6%).
Europe: Climate Neutral by 2050
From the Paris Agreement and Fridays for Future to the recent amendment of the German Climate Change Act and the European Commission’s “Fit for 55” package: the international community, supranational organizations, national policymakers, and social movements are increasingly turning their attention directly to climate change. Fit for 55 raises the EU’s 2030 target for greenhouse gas emissions reductions by 15 percentage points to at least 55 percent compared to 1990 levels.
ifo Business Climate Eastern Germany: Sentiment Improves Again (November 2022)
Sentiment among companies in eastern Germany improved markedly in November. The ifo Business Climate Index for the entire regional economy rose to 89.3 points, up from 86.3 points in October. The companies surveyed raised their overall assessments of the current situation perceptibly. Their outlook for the next six months improved appreciably.
New Record Low in Orders for German Residential Construction
The slump in residential construction in Germany continues. In July, 40.3% of companies complained of a lack of orders, up from 34.5% in June. A year ago, the proportion was 10.8%. These findings are from the ifo Institute’s latest survey. “A storm is brewing. Following many years of expansion, now higher interest rates and the drastic rise in construction costs are choking off new business,” says Klaus Wohlrabe, Head of Surveys at ifo.
Joint Economic Forecast Spring 2024: Headwinds from Germany and Abroad – Institutes Revise Forecast Significantly Downward
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%.
ifo Business Climate Index for Eastern Germany Rises Sharply (March 2021)
Sentiment among companies in eastern Germany improved greatly in March. The ifo Business Climate Index for the entire regional economy climbed to 94.9 points from 91.0 points in February. The survey participants’ assessments of the current situation improved markedly, and pessimism regarding future expectations also ebbed.
ifo Business Climate Index Sees a Minimal Decline (August 2022)
A bleak mood hangs over the German economy. The ifo Business Climate Index fell in August to 88.5 points, down from 88.7 points (seasonally adjusted) in July. Companies were somewhat less satisfied with their current business, and the strong pessimism of their outlook for the coming months is virtually unchanged. Uncertainty among the companies remains high, and the German economy as a whole is expected to shrink in the third quarter.
ifo Export Expectations Fall (June 2023)
Sentiment in the German export industry has deteriorated noticeably. The ifo Export Expectations fell to -5.6 points in June, down from +1.0 points in May. This is the lowest level since November 2022. “In addition to weak demand on the German domestic market, we’re now also seeing fewer orders from abroad,” says Klaus Wohlrabe, Head of Surveys at ifo. “This is bad news for Germany’s export economy.”
ifo Business Climate Eastern Germany Improves Somewhat (January 2024)
The ifo Business Climate Index Eastern Germany rose slightly in January. Compared to December, the barometer of business sentiment for the regional economy in eastern Germany increased by 0.4 points to 89.0 points. The eastern German companies surveyed provided assessments of their business situation that were unchanged from the previous month and raised their business expectations slightly.
ifo Export Expectations Rise (July 2020)
Cautious optimism is spreading among German exporters. The ifo Export Expectations for manufacturing rose in July from minus 2.2 points to plus 6.9 points. German exports are benefiting from the economic recovery in many countries.
ifo Employment Barometer Rises (May 2021)
German companies are planning to hire more employees. The ifo Employment Barometer rose to 100.2 points in May after measuring 98.3 points in April. This is its highest value since June 2019. Progress with vaccinations and the prospect of reopening the economy are having a positive effect on the labor market.
Joint Economic Forecast Autumn 2022: Energy Crisis: Inflation, Recession, Welfare Loss
The leading economic research institutes expect GDP to expand by 1.4 percent in the current year and contract by 0.4 percent in 2023. In 2024, GDP will expand at an annual average rate of 1.9 percent.
Cloud Computing in Use at 46.5% of Companies in Germany
Among German companies, 46.5% are currently using cloud computing technology for their business processes, while 11.1% are planning to. A further 18.2% of all companies surveyed are still discussing whether or not to introduce the technology. “Cloud computing has clearly established itself as a key component of modern IT infrastructure at German companies,” says industry expert Anna Wolf of the ifo Institute. In cloud computing, IT resources such as software, storage, and computing power are made available via the internet. Companies use this technology to optimize their business processes.