Germany also has challenges to confront to maintain its economic performance. One such challenge is the effect of an ageing society on the workforce. As the labour force shrinks, potential growth will fall and this economy risks losing its leading status. Another challenge is to raise domestic demand with reforms and investment.
Graph 3  Headline Inflation* Year-ended %  %  8  8  70 per cent interval  6  6  4  4  2  90 per cent interval  0 -2  2 0  2014  2016  2018  2020  2022  2024  -2  *  Confidence intervals reflect RBA forecast errors since 1993.