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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Die Sorge um De-Industrialisierung führt in die Irre
Reint E. Gropp
Wirtschaft im Wandel,
No. 3,
2025
Abstract
Eine der größten Sorgen sowohl der aktuellen als auch der vorhergehenden Regierung ist es, in Deutschland wichtige Industrieproduktion zu erhalten beziehungsweise neu anzusiedeln. Dabei geht es um eine breite Palette von Sektoren: Halbleiter, Batterien, Chemie, Stahl, Pharmazeutika oder Elektroautos. Basierend auf diesem Ziel werden signifikante Subventionen gerechtfertigt, etwa Einzelsubventionen in Milliardenhöhe für individuelle Unternehmen (Intel, TSMC) oder generelle Vergünstigungen wie der Industriestrompreis. Deutschland ist mit dieser Sorge nicht allein; auch die USA, die EU, Indien, Indonesien und viele weitere Länder versuchen, Anreize für inländische Produktion zu schaffen.
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10th Vintage
The CompNet 10th Vintage Dataset 10th Vintage dataset is now available! The CompNet dataset provides a comprehensive set of micro-aggregated indicators, specifically designed to…
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Centre for Evidence-based Policy Advice
Centre for Evidence-based Policy Advice (IWH-CEP) The Centre for Evidence-based Policy Advice (IWH-CEP) of the IWH was founded in 2014. It is a platform that bundles and…
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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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Vocational Training
Vocational Training at IWH At the Halle Institute for Economic Research (IWH) the state-approved professions specialist in media and information services (m/f/x) [library] ,…
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25.09.2025 • 29/2025
Fiscal policy will stimulate the East German economy next year – Economic Forecast Fall 2025 for the East German economy
In 2025, the economy in East Germany, as in Germany as a whole, is likely to do little more than stagnate. In the coming year, fiscal policy measures will stimulate the economy, but their effects are likely to be somewhat weaker than in Germany as a whole. The Halle Institute for Economic Research (IWH) expects the expansion rate of the East German economy in 2025 to be at 0.3%, slightly higher than that of Germany as a whole (0.2%). In both following years, it will rise to 1.1% and 1.2% respectively, which is slightly less than in the west.
Oliver Holtemöller
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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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Guiding Theme and Research Profile
Guiding Theme and Research Profile Guided by its mission statement , the IWH places the understanding of the determinants of long term growth processes at the centre of the…
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IWH FDI Micro Database
IWH FDI Micro Database The IWH FDI Micro Database (FDI = Foreign Direct Investment) comprises a total population of affiliates of multinational enterprises (MNEs) in selected…
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