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
Senior Project Manager
The Single Market Programme promotes the EU internal market in order to strengthen it, standardise it and make it more competitive. Prognos was involved in the mid-term evaluation of the programme.
Prognos is supporting the North Rhine-Westphalian Ministry of the Environment in organising, implementing and establishing the world's first trade exhibition for the climate adaptation industry.
The Public Sector Loan Facility is an EU financial instrument to ensure a socially just transition to climate neutrality in the regions. Prognos and t33 srl evaluated the instrument.
German industry is heavily dependent on raw materials and intermediate products from abroad, especially from China. Prognos analysed supply chains and developed recommendations for action.
How can innovations be implemented in practice? This is where the BMBF's ‘Innovative University’ funding initiative comes in. Prognos and Fraunhofer ISI are evaluating the programme.
On behalf of the BMWK, we evaluate the impact of the BEG in the funding period 2021 – 2025 together with ifeu, ITG, and FIW.
Specialists waste a lot of time on tiresome routine tasks. 3D planning tools or digital twins can help. Our analysis for the Fraunhofer IGD shows which professional groups benefit directly from their digital technologies.
Prognos has developed a tool for the Circular Cities and Regions Initiative (CCRI) that supports cities and regions in monitoring their circular economy activities.
Foreign trade, employment, investment and raw materials: ahead of the new US administration taking office, we analysed for the Süddeutsche Zeitung how dependent our economy is on the US and China.
How powerful is the green tech industry in Bavaria? What is its economic significance? We examined these questions on behalf of the vbw using our envigos model.
Prognos is one of the oldest economic research centres in Europe. Founded at the University of Basel, Prognos experts have been conducting research for a wide range of clients from the public and private sectors since 1959 – politically independent, scientifically sound.