<abstract xmlns="http://www.w3.org/1999/xhtml">
<p>Aggregate investment in Germany has developed much less dynamically than forecast prior to Russia’s invasion in Ukraine. The reasons for the subdued investment dynamic are uncertainty about future energy prices, increased interest rates and – in the case of housing investment – increased construction costs. The recently propsed Wachstumschancengesetz is insufficient to fundamentally alter these obstacles. Bolder policy measures are needed.</p>
</abstract>

Aggregate investment in Germany has developed much less dynamically than forecast prior to Russia’s invasion in Ukraine. The reasons for the subdued investment dynamic are uncertainty about future energy prices, increased interest rates and – in the case of housing investment – increased construction costs. The recently propsed Wachstumschancengesetz is insufficient to fundamentally alter these obstacles. Bolder policy measures are needed.

Turning Around Germany’s Investment Dynamic Requires a Bold Economic Policy Approach

Wirtschaftsdienst

This work is licensed under the Creative Commons Attribution 4.0 International License.

Die Investitionswende braucht eine mutigere Wirtschaftspolitik

Aggregate investment in Germany has developed much less dynamically than forecast prior to Russia’s invasion in Ukraine. The reasons for the subdued investment...

Turning Around Germany’s Investment Dynamic Requires a Bold Economic Policy Approach

Published Online: Oct 26, 2023

Page range: 670 - 675

DOI: https://doi.org/10.2478/wd-2023-0187

© 2023 Tom Bauermann et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.