section_path: Causes/Demographics
section_name: Demographics
paragraph_text: Demographics
  
  The International Monetary Fund posited that while weakness in Germany's economy could be attributed to multiple temporary factors such as consumer cutbacks due to inflation, interest rate hikes by the European Central Bank, and its restructuring of global demand from manufactured goods following the COVID-19 pandemic, that fundamental structural challenges were significant contributors to economic struggles, including accelerating population aging. The country's working-age population, which had been buoyed by immigration over the previous decade, was projected to decline sharply as baby boomers retired. This demographic shift was expected to decrease the GDP per person, further hinder productivity growth, and cause increased demand for healthcare, potentially forcing workers to go into healthcare away from other sectors. The IMF recommended that Germany make efforts to expand labor force participation, particularly among women, by improving childcare access and reducing secondary earners taxes in married couples.
  
  The German education system also showed signs of decline, with estimates suggesting that falling math skills could cost the economy about €14 trillion in output by the end of the century. The demographic crisis coupled with political strike and austerity measures limited the government's ability to invest in necessary reforms.