10.09.2026 • 27/2026
EREI-Update: Rents in Europe’s cities are 23% higher on average than in rural areas
The European Commission currently prepares the Affordable Housing Act to tackle widespread concerns about tight housing markets, for example voiced by the German Tenants' Federation (DMB) which blames rising rental cost as one main driver of a social crisis in Germany. The latest European Real Estate Index (EREI) by the Halle Institute for Economic Research (IWH) shows that rental prices in Germany rose indeed three times compared to the European average in August. Moreover, the rental premium in metropolitan areas vis-à-vis the average in non-metropolitan areas in eleven EU member states amounts to 23%.
Michael Koetter
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01.04.2026 • 10/2026
Economic growth in East Germany slightly higher than in the West – Implications of the Joint Economic Forecast Spring 2026 and of new data for the East German economy
In 2025, the East German economy expanded by 0.4%, somewhat more than Germany as a whole (0.2%). For 2026, the Halle Institute for Economic Research (IWH) expects growth of 0.7% for East Germany (Germany: 0.6%). The unemployment rate is likely to amount to 7.9% in the current year, after 7.8% in 2025.
Oliver Holtemöller
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14.01.2026 • 2/2026
Compliance with the EU fiscal rules requires extensive consolidation – Medium-term projection of macroeconomic developments and public finances in Germany
Germany faces considerable structural burdens from both macroeconomic and fiscal perspectives, as potential growth is likely to be significantly lower than in past decades. A projection by the Halle Institute for Economic Research (IWH) on macroeconomic developments up to the year 2040 shows that, under unchanged fiscal policies, public debt can be expected to continue rising. The federal government's fiscal-structural plan assumes compliance with EU requirements, but this is only achievable under the assumption of high global spending cuts that have not yet been specified in detail.
Oliver Holtemöller
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Research Articles
Research Articles Explore cutting-edge research based on CompNet’s micro-aggregated firm-level data and related analytical tools. These articles cover empirical and theoretical…
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IWH Research Seminar in Economics
IWH Research Seminar in Economics The IWH Research Seminar in Economics is the core seminar series at IWH. Speakers from all over the world take the opportunity to present their…
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25.09.2025 • 28/2025
Joint Economic Forecast Autumn 2025: Fiscal stimulus masks structural weakness
The German economy is emerging from the trough and is likely to regain some momentum over the next two years. Following stagnation in the first half of the year, the Joint Economic Forecast project group predicts gross domestic product growth of 0.2% for the current year in its fall report. In the next two years, an expansionary fiscal policy is likely to accelerate economic growth noticeably to 1.3% and 1.4%, respectively. This means that the institutes' forecast for this year and next remains roughly unchanged from the spring report. “The German economy is still on shaky ground,” says Dr Geraldine Dany-Knedlik, head of the Forecasting and Economic Policy Division at the German Institute for Economic Research (DIW Berlin). “It will recover noticeably in the next two years. However, given ongoing structural weaknesses, this momentum will not last.”
Oliver Holtemöller
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Research Data Centre
Research Data Centre (IWH-RDC) Direct link to our Data Offer The IWH Research Data Centre offers external researchers access to microdata and micro-aggregated data sets that…
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East Germany
The Nasty Gap 30 years after unification: Why East Germany is still 20% poorer than the West Dossier In a nutshell The East German economic convergence process is hardly…
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The Rise of Populist Parties in Europe
The Rise of Populist Parties in Europe: The Dark Side of Globalisation and Technological Change? Is the increasing strength of populist parties due to economic causes?…
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