Konjunktur in Nordrhein-Westfalen: Expansion bleibt schwach
Economic growth in North Rhine-Westphalia continues to be lower compared to Germany as a whole. The weakness seems to have structural reasons, on particular the still high importance of basic industries und the change in the energy sector. Against this background, GDP growth will only reach 0,9% in 2014. For 2015, growth a GDP rate of 1,0% is expected which is once again lower than the German rate. This is also due to the fact that upswings borne by private consumption are less beneficial for the North Rhine-Westphalian economy than those supported by strong exports and investment in equipment. Thus, unemployment will stay higher than in residual Germany. In this year, the weaker than expected GDP growth led to an increase of public deficit. In 2015, the public deficit will be curbed by an increase of the land tax which, however, will dampen economic growth.
Döhrn, R., G. Barabas, A. Fuest and H. Gebhardt (2014), Konjunktur in Nordrhein-Westfalen: Expansion bleibt schwach. RWI Konjunkturberichte, 65, 4, 17-29