The current account deficit was fully covered by net FDI inflows for the eighth year in a row, supporting the sustainability of our external position. The record high FDI inflow remained geographically and project-diversified in 2022 as well and channelled mainly to tradable sectors.
At the Bundesbank, we can understand this very well from an economic perspective. In our simulations, we calculated the effects that would result from the statutory retirement age being linked to life expectancy as of 2031. That would leave the ratio of contribution years to retirement years roughly constant, thus taking pressure off the contribution rate and the Federal budget.