01 February 2010

EZA 930 Report: GERMANY Demographics

• In its 21Jan press release the Federal Statistical Office of Germany estimated that in 2009 the number of births in Germany fell to a post-war low of around 650 thousand; half the number born in the peak year 1965.
• Total German population declined by around 250k (0.3%) in 2009. It now stands at about 1% below its 2002 peak level.
• But the longer term picture shows that both the level and the rate of German population decline seem to be faster than earlier projections.
• This will have significant economic and political consequences, e.g. a smaller workforce, lower pensions, lower savings.
• The political response to the challenge - raising the pension age and improving the scope for women to combine families with jobs - has been insufficient and contradictory.

© EZA