Germany is expected to face prolonged near-stagnation as baby boomers retire and the workforce diminishes, the International Monetary Fund (IMF) has warned. The IMF, often referred to as the world's lender of last resort, indicated that Europe's largest economy will experience lackluster growth unless it can find ways to maintain employment levels.
The working-age population in Germany is projected to decrease by 0.7 percentage points "in the medium term" due to the retirement of the baby boomer generation and declining immigration rates, the IMF reported. This will result in Germany experiencing the largest decline in workforce growth among G7 countries, with the growth rate dropping to half of previous estimates for the manufacturing powerhouse.
What concerned us at investorAi was comments from Carsten Brzeski, an economist at ING, who described these figures as marking the beginning of “the Japanification of Germany.” He also noted, “Before the pandemic, Germany’s ...
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