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The Winners of the Global Economy Prize 2025 have been announced. The prize, which will be awarded for the 20th time by the Kiel Institute for the World Economy together with its partners, the City of Kiel and the Schleswig-Holstein Chamber of Industry and Commerce, is intended to provide an impetus to tackle the major global economic challenges across borders.

The 90-day “tariff pause” between the US and China is expected to provide noticeable short-term relief, especially for the US economy. Simulations using the KITE model from the Kiel Institute for the World Economy indicate that inflationary pressure in the US may decrease. Current calculations suggest that prices will rise by around 4.3 percent in the short term, which is 1.2 percentage points lower than under the escalated tariff levels with up to an additional 145 percent tariffs from before.

Prices for residential real estate in Germany rose significantly in the first quarter of 2025, particularly in several major cities. Despite ongoing economic and monetary policy uncertainties, the market for apartments, single-family homes and multi-family homes is gaining momentum.