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Troubles for the German Economy up ahead
Germany is one of the most stable countries in terms of its economy and over the years it has been maintained its position as the biggest general exporter despite the competition from other economic giants.
Driven by its strong labor market, the German economy has a competitive exports division balanced by reasonable domestic demand but with the current global economic state, Germany might be in unstable ground. As strong as the German economy may seem, might have more than their ageing population to worry about.
The Young is no Where to Be Found
The country’s demography poses a great threat in the economy of the country, despite the facts that an exponential amount of people migrating to Germany. The country’s population is set to shrink at alarming numbers of 74.5 million in 2050. The country’s population is composed of only 13 percent of the population and people with the age to 60 and up surged to 39 percent from 27 percent.
This demographic problem will take its toll in the German economy, which will affect that employment rate of the country.
Germany After the Brexit
This is yet another big problem for the country. Analysts say that exports are greatly reduced after the U.K.’s decision to leave the European Union last year.
In the data collected from last year’s exports, the German exports is in a slumping trend line and by the looks of things, the problems of in its exports is only getting worse, and might not be able to gain momentum anytime soon.
In last year October, Germany exported goods summing up to 59.7 billion euros which down by 4.5 percent in that same year. The Data supports the weakening trend line of its exports in a slumping trend line.
This is a big problem, because the country’s export is the main growth driver of the German Economy.