IFO Project 1.5% Growth For Germany Through To 2012
March 13, 2008
In the first ever medium-term projection released by IFO Institute, Germany has been seen to have a potential growth rate of 1.5% through to 2012.
This prediction, from the Munich-based think-tank, is based upon the belief that in spite of the population decline that Germany is expected to undergo in the next few years, that there will none-the-less be increased participation in the labor workforce and longer work hours are on the cards too.
This hypothesis is also based on the assumption that reforms recently introduced into the labor market of Germany will not be altered, nor will minimum wage. However, according to the release made by IFO, the actual rate of growth will depend on business-cycle factors which cannot be accurately speculated upon.