Germany poised for stagnation with ageing population, warns IMF
The eurozone’s largest economy is heading for stagnation amid a period of rapid population ageing that will place intense strain on the state and public finances, the International Monetary Fund has warned.
In a snapshot of the German economy, the fund said economic growth would slow markedly due to the generation of baby boomers born between 1946 and 1964retiring and the recent waves of immigration, which have hitherto replenished the labour force, subsiding.
The Washington-based organisation, which has 190 member countries, said that “unfavourable demographics are projected to slow annual economic growth to around 0.7 per cent over the medium term”, adding that Germany was facing the fastest slowdown in growth of the working-age population of any G7 economy.
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