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Advantages of increasing public investment in Germany

Between 2005 and 2014, the German government allocated an average of 2.2% of its GDP for the construction and renovation of roads, schools and day care centres. This is significantly less than the OECD average for the same period (3.3%). A recent study conducted by Prognos uses scenarios to show the impact of increasing and sustaining public investment in Germany by 2025. If Germany were to invest 3.3% of its GDP annually (same as the OECD average), GDP growth would be 1.6% per year. That way in 2025 Germany could generate almost 80 billion more €. Furthermore, the authors confirm that an increase in public investment does not conflict with the German debt rule and the "black zero".

Autor: Dr. Michael Böhmer, Markus Hoch (Prognos AG), Manuela Barišić, Fritz Putzhammer (Bertelsmann Stiftung)

Kunde: Bertelsmann Stiftung

Jahr: 2017

Typ: Study

Tags: employment, Germany, investment