Germany must invest more in its future
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Germany must invest more in its future. / Bach, Stefan; Baldi, Guido; Bernoth, Kerstin et al.
In: DIW Economic Bulletin, Vol. 3, No. 8, 2013, p. 3-4.Research output: Journal contributions › Journal articles › Research
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TY - JOUR
T1 - Germany must invest more in its future
AU - Bach, Stefan
AU - Baldi, Guido
AU - Bernoth, Kerstin
AU - Blazejczak, Jürgen
AU - Bremer, Björn
AU - Diekmann, Jochen
AU - Edler, Dietmar
AU - Farkas, Beatrice
AU - Fichtner, Ferdinand
AU - Fratzscher, Michael
AU - Gornig, Martin
AU - Kemfert, Claudia
AU - Kunert, Uwe
AU - Link, Heike
AU - Neuhoff, Karsten
AU - Schill, Wolf-Peter
AU - Spieß, C. Katharina
PY - 2013
Y1 - 2013
N2 - Shortly before the parliamentary election in 2013, Germany is riding on a wave of euphoria: hardly any other euro country has weathered the financial and debt crisis so well. Since 2009, GDP has grown by over eight percent and 1.2 million new jobs have been created. Public finances were consolidated and, in 2012, there was a fiscal surplus of 0.2 percent of GDP. An impressive financial position indeed for a country that, only ten years ago, was considered the sick man of Europe. But it is also a deceptive one. If one substitutes these for other comparative figures, then this image is seriously tarnished. Since 1999, Germany has achieved lower economic growth than the rest of the euro area. Real wages have barely increased since 1999 and real consumer spending has grown much more in the euro area on average than in Germany. In addition, German net public assets have contracted significantly. In 1999, net state assets were about 20 percent of GDP and, by 2011, they had declined to 0.5 percent of GDP and are, therefore, no longer available for future generations. In many areas, Germany has not really progressed at all and in some areas it has fallen significantly behind other countries. These arrears have not been balanced out by recent positive developments.
AB - Shortly before the parliamentary election in 2013, Germany is riding on a wave of euphoria: hardly any other euro country has weathered the financial and debt crisis so well. Since 2009, GDP has grown by over eight percent and 1.2 million new jobs have been created. Public finances were consolidated and, in 2012, there was a fiscal surplus of 0.2 percent of GDP. An impressive financial position indeed for a country that, only ten years ago, was considered the sick man of Europe. But it is also a deceptive one. If one substitutes these for other comparative figures, then this image is seriously tarnished. Since 1999, Germany has achieved lower economic growth than the rest of the euro area. Real wages have barely increased since 1999 and real consumer spending has grown much more in the euro area on average than in Germany. In addition, German net public assets have contracted significantly. In 1999, net state assets were about 20 percent of GDP and, by 2011, they had declined to 0.5 percent of GDP and are, therefore, no longer available for future generations. In many areas, Germany has not really progressed at all and in some areas it has fallen significantly behind other countries. These arrears have not been balanced out by recent positive developments.
KW - Economics
M3 - Journal articles
VL - 3
SP - 3
EP - 4
JO - DIW Economic Bulletin
JF - DIW Economic Bulletin
SN - 2192-7219
IS - 8
ER -