High Public Deficits not only due to the Pandemic – Options for Fiscal Policy

According to the IWH’s medium-term projection, Germany's gross domestic product will grow more slowly between 2020 and 2025 than before because of the pandemic and the declining work force. There is much to be said for relaxing the debt brake.

Read more

MICROPROD cited as best practice example in newly released EU report

The partners of MICROPROD, an EU project coordinated by IWH, are delighted and honoured to be featured as a best practice example in the newly published edition of the report on the integration of social sciences and humanities (SSH) in the Horizon 2020 programme.

Read more

IWH Bankruptcy Update: Bankruptcies Tick Upward in December

Considerably faster than the official statistics, the IWH Bankruptcy Update provides a monthly update on corporate bankruptcy. In December the number of bankruptcies experienced a noticeable uptick reaching pre-COVID levels. However, comparatively few jobs were affected.

Read more

IWH issues warning of a new banking crisis

The coronavirus recession could mean the end for dozens of banks across Germany – even if Germany survives the economic crisis relatively unscathed. IWH President Reint Gropp warns of a potentially high additional burden for the already weakened real economy.

Read More

IWH hosts award-winning US economist

The renowned Max Planck-Humboldt Research Award 2019 goes to Ufuk Akcigit, Professor of Economics at the University of Chicago. At the IWH, Akcigit aims to use innovative methods to investigate why the economy in eastern Germany is still lagging behind that in western Germany – and what role the privatisation process 30 years ago played in this.

Read more

IWH leads large scale EU project on productivity

Is productivity growth slowing in industrialised countries? And if so, why? From the start of 2019, the IWH will be addressing these decisive questions as the leading coordinator of a new European research collaboration: MICROPROD is the largest EU project in the history of the institute.

Read More

The Halle Spirit

We provide independent research on economic topics that really matter and aim to enrich society with facts and evidence-based insights that facilitate better economic decisions. We focus on growth and productivity because we are convinced that economic prosperity enables people to lead happier lives. We provide young researchers a nurturing place to develop their competencies and to make the most of their skills. Working in flat hierarchies, we are driven by open-minded intellectual curiosity and we have the courage to share inconvenient insights.

Read more

What are you interested in?

Research Networks, Data and Policy Advice

Figure It Out!

4.6
percent

of German life insurers’ investment portfolio is invested in equity.

10.7
percent
of life insurance investment assets for the EU as a whole are in equity.

Press Releases

25.01.2021 • 2/2021

High public deficits not only due to the pandemic – Medium-term options for fiscal policy

Professor Dr Oliver Holtemöller
Abstract

According to the IWH’s medium-term projection, Germany's gross domestic product will grow more slowly between 2020 and 2025 than before, not only because of the pandemic crisis, but also because the work force will decline. The resulting structural public deficits are, if the legal framework remains unchanged, likely to be higher than the debt brake allows. Consolidation measures, especially if they relate to government revenues, entail economic losses in the short term. “There is much to be said, also from a theoretical point of view, for not abolishing the debt brake, but for relaxing it to some extent,” says Oliver Holtemöller, head of the Department of Macroeconomics and vice president at Halle Institute for Economic Research (IWH).

Read press release

07.01.2021 • 1/2021

IWH Bankruptcy Update: Bankruptcies Tick Upward in December

Professor Dr Steffen Müller
Abstract

In December 2020 the number of corporate bankruptcies in Germany experienced a noticeable uptick reaching pre-COVID levels. According to the Halle Institute for Economic Research (IWH), which monitors corporate bankruptcies in Germany, similar bankruptcy figures can be expected for January and February of 2021.

Read press release

17.12.2020 • 27/2020

Much more bankruptcies expected than currently observed in Germany

Professor Dr Oliver Holtemöller
Abstract

In a recession, the number of bankruptcies usually increases with some delay. However, despite the corona crisis, the number of bankruptcies in Germany is lower than predicted based on the long-term trend. The state aid packages and the suspension of the insolvency rules have led to fewer bankruptcies than expected. The Halle Institute for Economic Research (IWH) has estimated how many bankruptcies would actually have been likely to occur by industry because of the corona recession if the typical economic pattern had been in place. The results indicate that after the end of the state aid and exception rules bankruptcies are likely to pick up.

Read press release

16.12.2020 • 26/2020

New wave of infections delays economic recovery in Germany

Professor Dr Oliver Holtemöller
Abstract

The lockdown is causing production in Germany to decline at the end of the year. When restrictions will be relaxed again, the recovery is likely to pick up pace only slowly, partly because the temporary reduction in value-added taxes is expiring. In spring, milder temperatures and an increasing portion of the population being vaccinated are likely to support the German economy to expand more strongly. The Halle Institute for Economic Research (IWH) forecasts that gross domestic product will increase by 4.4% in 2021, following a 5% decline in 2020. In East Germany, both the decline and the recovery will be significantly less pronounced.

Read press release

Media Centre

Facts and Figures

Current Publications

Media Centre

Current Events

Veranstaltung
25
Jan 2021

17:00 - 18:30

IWH Research Seminar

Virtual Lecture: Market Concentration and Uniform Pricing: Evidence from Bank Mergers

Nuno Paixão  Bank of Canada
View event
Browse all events

IWH at a Glance

89
IWH people
14
nations
17
research groups
Mitglied der Leibniz-Gemeinschaft LogoTotal-Equality-LogoWeltoffen Logo