12/23/2021- 9:03 p.m.
Germany Facing ‘Baby-Boomer’ Cliff Edge as Economy Battles Prices & Shortages
Experts have predicted that the workforce of Europe’s largest economy could peak within two years and then shrink by 5MN by the end of the decade – as retiring “baby boomers” fuel a dangerous labor crunch.
Deutsche Bank believes the ageing population will push economic growth below 0.75% as soon as 2025. The widening demographic gap is currently plugged by over 400k net immigrants a year.
Germany spends $112BN – a quarter of its entire federal budget – on propping up its pay-as-you-go pension scheme, and could end up needing to double that by 2040, according Commerzbank chief economist Jorg Kramer.
