Economy: Report – IW sees rising growth potential for the German economy from 2030
Investments are intended to give the German economy a long-term boost. However, the demographic change is slowing down growth because fewer people will be of working age.
Germany's economy is expected to grow significantly faster in the next decade than in the current one, according to the IW Institute. The growth potential is forecast to accelerate to 0.7% per year between 2030 and 2040, up from 0.3% in the current decade. The institute attributes the increase to digitalization, artificial intelligence, and rising capital investment, which are expected to boost productivity and efficiency.
However, the growth contribution from labor is expected to be slightly negative due to a decline in the working-age population, which is projected to decrease by 7.7% to 50.8 million by 2040.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
