Economic parameters and conditions

World Economy

In the last months of 2008 and in the beginning of 2009, the world economy faced one of the worst crises of the postwar era. However, through extensive support measures of the central banks and governments worldwide, the foundation for a recovery was laid. In 2009, the global economic output is estimated to have decreased by 0.8 %.1

In spite of the improved expectations, the economic recovery of the global economy will probably only develop slight momentum in 2010. Positive impulses should continue to emerge through the global economic stimulus programmes and the strong development of emerging countries. The IFW assumes global growth of 3.6 % for 2010 and of 3.9 % for 2011.

Development in Germany

In Germany, the worldwide decline in demand led to a decline in exports and equipment investments at the beginning of 2009. In spite of a slight economic improvement in the second half of the year, the aggregate production dropped by 4.8 % in the yearly average. However, the expansive fiscal and monetary measures, together with elements stabilising the labour market, were able to prevent an even greater slump. The stability of the labour market was above all due to the increased use of short-time work and the greater flexibility in the collective agreement provisions compared to earlier cycles.2

1 World Economic Outlook of the IFW, 26 January 2010
2 Council of Experts, Annual Expert Report 2009/2010.

My Annual Report

Lack of momentum of the world economy in 2010