stage Germany’s economic weakness “It will be at a moderate level, but its effects will be noticeable in the short and medium term.”“Five Wise Men” o Economists Advisory Council of the first economic government in the Eurozone. We must also eliminate its impact. ‘baby boom’ about her retirement system The German is also a mid-level promotion for the age at which retirement is reached, in line with the recommendations submitted by the Council to the Chancellor’s executive branch. Olaf Scholz.
In accordance with the forecasts previously published by the country’s major economic institutes and the Board of Directors Olaf Scholz‘Wise men’ predict something will happen in 2023 0.4% contraction in gross domestic product (GDP). By 2024, they predict that a recovery, albeit slight, will already occur. 0.7% GDP growth.
triggered by the energy crisis the Russia’s invasion of Ukraine Germany, which has to quickly seek alternatives to gas, oil and coal supplies from Russia, continues to put pressure on its economy. This year the situation has normalized and there is no fear that energy prices will soar to record levels again, as in 2022. However, according to the Chairman of the Wise Men, it will not be possible to prevent a delay in recovery. Monika Schnitzer.
The level of inflation will fall, but also at a rather slow pace: this year the forecast average will be 6.1%, for 2024 it is expected to be 2.6%, that is, in 2020 it will be close to the “desired” levels. European Central Bank (ECB) -around 2%-.
baby boom effect
Besides demographic developments, there are many factors hindering the German economy. Staff shortages affect almost all industrial sectors, as well as the service sector, as well as the hospitality, healthcare and education sector. According to Schnitzer, the European Central Bank’s interest rate hike is a “logical and correct” measure. But according to the head of the Wise Men, it is also clear that they are slowing down investments and private consumption.
Many of the factors the council points to are global in nature. However, experts on Germany’s intrinsic values emphasized the following advice: Moderately raise the age of access to full retirement. Currently, this period is 66 years and 6 months, and it is expected to gradually reach 67 years by 2025. The Council needs to organize a gradual increase for approximately 6 months from this date.
This advice is meant to address both the increase in life expectancy – or the aging of the population – and the effects of the retirement of “baby boomers” on the pension system – especially as they enter the age at which they were born. Retiring in 1964.
23 percent of Germany’s population of 82 million is between the ages of 40 and 59, and the population over 60 is over 25 percent.
Source: Informacion
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