International Finance

The research project studies the effects that China’s growing economic engagement has on African economies, and how China’s economic presence is perceived by African citizens. To this effect, the key dimensions of trade, investment, aid, debt, and migration flows from China to Africa (and vice versa) are analyzed.

The Cluster for Economic Research on Africa focuses on enterprises and entrepreneurial potential in African markets, trade and investment policy, and issues of macroeconomic development, stability, and public finance. This research will strengthen evidence-based policy advice for German and European Africa policy and also engage and address African partners.

The purpose of the report is to provide a systematic overview of the relevant data related to Big Data and their potential for macroeconomic analysis (in particular business cycle monitoring and forecasting). In this context, both the possibilities and the challenges that may arise due to data availability, data quality, methodological requirements or the manageability of the data will be discussed in detail.

Ukraine is facing uncertain times regarding continued support from its Western allies. A second term for Donald Trump as US President or leaning on new lending schemes such as the proposed Russian frozen asset or NATO contributions as a replacement for European aid could severely undermine Ukraine. Meanwhile, aid increased during the summer months compared to the spring, driven primarily by funds aimed at stabilizing Ukraine’s economy. This is shown in the latest update of the Ukraine Support Tracker, which tracks aid through August 2024.

After decades of military downsizing, German military spending is woefully inadequate to meet the new strategic challenge posed by Russia—as both a new report by the Kiel Institute for the World Economy and the new Kiel Military Procurement Tracker show. In combination with a cumbersome national procurement system and depending on weapon systems it would take Germany as much as a century to bring its military inventory up to the level of 20 years ago. In contrast, Russia is radically increasing its capacity to produce armaments, including advanced systems, and is now in a position to produce as many weapons in six months as all of Germany’s armed forces currently field.

A long-awaited Ukraine supplemental appropriations bill for Ukraine was finally signed into law on April 24, after months of deliberation. At USD 31.5 billion, the funds destined for Ukraine are only about half of the reported USD 61 billion and are significantly lower than the USD 39.5 billion granted in December 2022. The other half is mostly Department of Defense funding for procurement, operations, and maintenance and is not directly attributable as aid for Ukraine. There is still a large discrepancy between air defense equipment provided to Ukraine and the stocks held by the donor states. This is shown in the latest update of the Ukraine Support Tracker, which tracks aid to Ukraine through April 30, 2024.