News of a slowdown in the German economy came as a surprise to many, including the German government. Is the only powerful growth engine of the eurozone suddenly running out of steam? The German economy is not as robust as one may think and its long-term prospects for growth are rather dim.

<i>The German economy has been surprisingly resilient over the last few years. But this is unlikely to last. There are many reasons why Germany may not really be and remain the ‘fit man of Europe’. Some have to do with domestic policy - like the roll-back of labour-market and pension reforms or the costly energy strategy - some with domestic demography, others with international economic dep...

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Dr. Michael Wohlgemuth
Demographic decline will be Germany’s greatest challenge in the long run: coming decades could see Germany’s workforce shrink by about 200,000 every year. The old age dependency ratio - between those older than 65 and those of working age - could increase from 31 per cent in 2013 to 57 per cent in 2045
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