The ifo Institute for Economic Research, based in Munich, focuses in particular on applied research.
With the help of company surveys, it creates forecasts, analyzes and indices that reflect the current state of the German economy.
Munich - The Ifo Business Climate Index is one of the best-known publications of the Ifo Institute for Economic Research.
The institution has its headquarters in the Bogenhausen district of the Bavarian capital Munich and a branch in Dresden, Saxony.
Ifo Institute for Economic Research: Foundation and History
The history of the Ifo Institute for Economic Research goes back to 1949.
When it was founded in Munich, it was a merger of two predecessor institutions: the South German Institute for Economic Research and the Information and Research Center for Economic Observation Ifo.
One of the central sources of ideas for the goals and tasks of the Ifo was the then Federal Minister of Economics and later Federal Chancellor Ludwig Erhard.
He laid the foundation stone for the institute's policy-oriented economic research, which is still used to this day.
This started its service with three departments:
an economic one with the aim of observing and analyzing macroeconomic and, in particular, economic developments
an industry-specific one that was responsible, among other things, for collecting economic data
a business
In the year it was founded, the Ifo Institute for Economic Research was one of the first to benefit from joint state funding for non-university research institutions.
Another premiere was a new method for monitoring the economy and the market with the help of company surveys.
It was first introduced in 1949 and has been carried out regularly since 1972.
Since then, the ifo business climate index has been derived from annual business surveys.
To this day, it is an integral part of the institute's tasks.
Ifo Institute for Economic Research: Who is behind the institute?
The founder and at the same time the first president of the Ifo Institute for Economic Research was Karl Wagner.
The doctor of law and President of the Bavarian State Statistical Office headed the institute until 1955. The other presidents at a glance:
Hans Langenlütke, 1955-1965
Karl Maria Hettlage, 1965-1976
Karl Heinrich Oppenländer, 1976-1999
Hans-Werner Sinn, 1999-2016
Clemens Fuest has been President of the Ifo Institute for Economic Research since 2016 (as of October 2021).
Fuest is professor of economics at the Ludwig Maximilians University in Munich and a member of the scientific advisory board at the Federal Ministry of Finance.
As a registered association, the Ifo consists of a general assembly, the board of directors, an administrative board, a board of trustees and the scientific advisory board.
Fuest acts as the chairman of the board of directors, who is overseen by the board of directors.
A total of around 200 employees work for the organization.
Ifo Institute for Economic Research: What tasks does the Ifo take on?
The Ifo Institute for Economic Research sees itself as a research facility for empirical economic and social science studies.
It provides the public with data, research results and information on the state of the German economy with the aim of using them as a basis for economic decisions.
The ifo formulates five fields of action in this context:
political advice
research
Information and service
Promotion of young talent
Participation in public debates
On the basis of the empirical research results, the Ifo Institute for Economic Research takes on various tasks in public.
In this way, it ensures that the information reaches the relevant industries, for example through press and media relations, events and specialist publications.
The tasks of the ifo in detail:
Organization and implementation of research seminars and lectures for the interested public
Company surveys
Creation of the monthly ifo business climate index
Development of economic models
university research in cooperation with the University of Munich and other educational and research institutions
The ifo business climate index
Every month the Ifo Institute for Economic Research asks German companies about their economic situation and expected developments.
In order to map the actual conditions as realistically as possible, the answers are weighted: Large companies and important industries count more.
Around 20 questions are addressed to companies from the manufacturing, construction, wholesale and retail sectors at the beginning of each month.
The answers are given: the participants can decide between a “good”, “satisfactory” or “bad” economic situation as well as “favorable”, “constant” or “unfavorable” prospects.
Based on the answers, the economic development in Germany should be forecast at an early stage.
