Demographic challenges

in Germany

The population of Germany is approximately 82.15 million. After a continuous decline from 2003, the population began to grow from 2011. The main reason is the large number of international migrants who have migrated to Germany.

But based on certain assumptions about birth rates, life expectancy, and net migration, the Federal Bureau of Statistics predicts that by 2060, Germany's population will be reduced by as much as 20% from today's figures.

Despite the increasing number of immigrants cannot solve the basic challenges in German demographics.

The demographic trend in Germany is obvious and we will study its impact on doing business in Germany.

We estimate that GDP will decrease because total hours will decrease. Although fewer people work, GDP has fallen.

The German government is currently working to offset this trend, while hoping to increase labor force participation. In Germany, we focus on the elderly and people with family responsibilities. E.g. A few years ago, it was decided to gradually increase the retirement age to 67, so that the labor market also has proprietary technology.

In some areas and industries, we have seen a shortage of skilled workers to fill the right individuals. Although encouraging skilled worker migration is a useful policy, we believe that it cannot prevent or even reverse demographic trends. We hope that the current situation can be used to immigrate and leave them in Germany.

Many reports indicate that productivity declines as the workforce ages. Recent research in this area has concluded that productivity levels have remained essentially unchanged. One business owner once said: "Young people can run faster, but older people know shortcuts."

Many companies are being forced to increase productivity through higher competition and stronger technological advances. We see many companies working very hard in this area.

Germany remains a country with high levels of innovation and technological progress. Qualifications and education will remain very strong and form the basis for maintaining the competitiveness of German companies. Also in an ageing society, everyone must remain flexible and willing to accept the new ideas accepted by most Germans. Germany's dual-track system will provide young people with the space to develop their talents, and Germany has a free university that ensures a still-trained workforce. Nevertheless, we still believe that more public funding should be used for infant and young child education.

Despite these challenges, Germany still has huge economic potential, with the highest GDP per capita, which is 358% of the world average, reaching an all-time high of $ 45,269.79 in 2015. Germany remains Germany's largest market.