05.04.2023 • 9/2023
East German economy has come through energy crisis well so far – Implications of the Joint Economic Forecast Spring 2023 and new data for the East German economy
In 2022, the East German economy expanded by 3.0%, significantly stronger than the economy in West Germany (1.5%). The background is a more robust development of labour and retirement incomes. For 2023, the Halle Institute for Economic Research (IWH) forecasts a higher GDP growth rate of 1% in East Germany than in Germany as a whole (0.3%). The unemployment rate is expected to stagnate, with 6.8% in 2023 and 6.7% in the following year.
Oliver Holtemöller
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05.04.2023 • 8/2023
Stubborn Core Inflation – Time for Supply Side Policies
The leading economic research institutes have raised their forecast for growth in German economic output in the current year to 0.3%. In the fall, they were still expecting a decline of 0.4%. “The economic setback in the winter half-year 2022/2023 is likely to have been less severe than feared in the fall. The main reason for this is a smaller loss of purchasing power as a result of a significant drop in energy prices,” says Timo Wollmershäuser, Head of Forecasts at ifo. Nevertheless, the rate of inflation will fall only slowly from 6.9% last year to 6.0% this year.
Oliver Holtemöller
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