Macroeconomics

The Cluster for Economic Research on Africa focuses on enterprises and entrepreneurial potential in African markets, trade and investment policy, and issues of macroeconomic development, stability, and public finance. This research will strengthen evidence-based policy advice for German and European Africa policy and also engage and address African partners.

The aim of this research project is to investigate and better understand the effects of globalisation on German companies.

The purpose of the report is to provide a systematic overview of the relevant data related to Big Data and their potential for macroeconomic analysis (in particular business cycle monitoring and forecasting). In this context, both the possibilities and the challenges that may arise due to data availability, data quality, methodological requirements or the manageability of the data will be discussed in detail.

According to the Kiel Institute's summer forecast, Germany is experiencing a moderate economic recovery. Economic output is expected to grow by 0.2 percent in the current year (spring forecast: 0.1 percent). The upturn will be driven primarily by a recovery in exports and consumption. However, there are no signs of strong economic momentum. The Kiel Institute expects growth of 1.1 percent in 2025 (spring forecast: 1.2 percent). The inflation rate is expected to level off at around 2 percent and the labor market will remain largely robust.

German real estate prices developed unevenly in the first quarter of 2024. The trend towards stabilization from the previous quarter persists, with the pace of price decline slowing down. However, there are major differences depending on the region and residential segment.

The purchase prices for apartments in German cities vary considerably between districts. City centers are particularly expensive, where the price per square meter can be up to twice as high as in outer or unpopular districts. Conversely, the wide price ranges mean that practically all major German cities still offer relatively favorable locations for buyers. The exception is Munich, where the cheapest quarter is more expensive than the most expensive quarter of all other major cities. This is shown by the latest evaluation of the German Real Estate Index (GREIX) on property prices at district level in 2023.