Looking ahead to the distant future, Germany will be near the bottom of the league table for growth by international standards. Studies conducted by the OECD show that, by 2060, Germany will have grown at the slowest rate of all 42 countries surveyed, primarily as a result of the demographics-driven decline in the number of hours worked.
With an annual trend growth rate of just over 1% by 2060, the OECD predicts that Germany will grow only half as quickly as the United States. As measured per capita, however, Germany and the US are expected to grow at a similar pace, by 1.5% per year by 2060. So, what can Germany do to improve its growth prospects in the long run?