That’s because, there is a trend in Germany, too, towards lower average growth rates, which will likely culminate in Germany having the second-lowest rate of economic growth of all 42 OECD countries until 2030. First, average productivity growth per hour worked has been contracting since 1970.
To make matters worse, a large number of skilled workers will leave the labour market in the years to come. Both of these developments will put a damper on potential growth. Thus, the challenge for Germany, too, is to boost productivity growth. This it could achieve, for instance, by tapping into the opportunities provided by digitalisation and technological advances.