Over recent quarters, wage increases have remained moderate. In the context of moderate economic growth, this trend should continue. These views are also embodied in the ECB staff projections. Average annual HICP inflation is projected by the staff to lie between 1.6% and 2.2% in 2005 and between 1.0% and 2.2% in 2006.
According to a long-term OECD forecast for 42 economies, by 2060 not a single country will be growing at a slower pace than Germany, and this is mainly down to the demographically-induced decline in the number of hours worked.