As one of Germany's largest economic think-tanks, it analyses economic policy and is known for its monthly Ifo Business Climate Index for Germany.

[1] The Frankfurter Allgemeine Zeitung ranks it as Germany's most influential economics research institute.

[2] Ifo's Business Climate Index is an early indicator of economic activity released monthly since 1972.

The database underlying the index is a monthly survey of 7000 in the construction, manufacturing, wholesale and retail industries.

[3][4] The Ifo Institute participates in the twice yearly (spring and autumn) joint analysis of the state of the German and world economy, the so-called Gemeinschaftsdiagnose.