Aging Workforce and Labor Shortages Weigh on German Economic Growth Outlook

German economic growth prospects remain meagre in the medium term, per the Kiel Institute for the World Economy
Domestic production potential could decline noticeably in coming years, only allowing 0.4% average annual growth
Aging society and loss of labor potential weigh on growth prospects
This year and next, labor force expected to stagnate at 47.1 million people
For 2022, Kiel Institute expects 0.5% GDP decline, more than the 0.3% decline expected this summer

reuters.com

Relevant topic timeline:

8/28/2023

Germany’s Epic Recession Continues: Economy Still Can’t Catch A Break

Germany's economy is in a recession, with zero growth since the third quarter of 2022 and a cumulative drop of 0.5% in GDP, which is likely to continue for another half year, impacting other European economies; the country's poor performance can be attributed to its energy policy and investors are also affected.

9/4/2023

Germany is staring at the end of its economic model

Germany, once hailed as Europe's economic powerhouse, is now facing structural problems and could be on the verge of decline, according to experts, with factors such as stagnant GDP, high inflation, an aging population, overdependence on exports, and underinvestment contributing to its current predicament.

9/24/2023

Germany's Fading Fortunes: The 'Sick Man of Europe' Struggles to Adapt Its Industry and Infrastructure for the Future

Germany, once the beating heart of the European economy, is facing structural challenges and a sense of decline, with forecasts predicting slow growth and contraction in the coming years due to its heavy reliance on manufacturing and struggle to transition to renewable energy and a service-based economy.

10/3/2023

Germany's Economic Contraction Highlights Years of Under-Investment

Germany's economy, the largest in the EU, is expected to contract by 0.6% this year due to a slowdown in exports and years of under-investment in infrastructure and technology, posing long-term challenges for growth and requiring significant investment and reforms to address them.

Topics

Posted 9/8/2023, 1:08:00 PM