Significance of the German economy for Europe
vbw – Bavarian Industry Association
2024
The national economies of Europe are closely interlinked. In 2022, 51 percent of German imported goods came from the EU. As the largest national economy in Europe German demand for goods also generates value added and employment in the other member states. The effect this has in the individual countries is shown in a new study that we conducted on behalf on the vbw – Bavarian Industry Association.
The core results of the study:
A scenario calculation illustrates, moreover, to what extent the remaining EU countries benefit in the case where Germany sees the most dynamic economic development possible. The result:
For the purpose of the study, we analysed the proportion of Germany’s foreign trade integration with the other EU member states. Next, on the basis of a multi-regional input-output model, we calculated the extent to which German demand secures value creation and employment in the EU. By means of a scenario analysis using the macroeconomic VIEW model, in a last step, we estimated the significance of Germany’s economic growth for the growth dynamic of the EU as a whole.
About the study (PDF, vbw website in German)
Project team: Dr Michael Böhmer, Jan Limbers, Johann Weiss, Eva Willer
Latest update: 13.06.2024
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