Germany: Staff Report for the 2024 Article IV Consultation (original) (raw)

- The economy is starting to recover after the huge energy price shock. IMF staff expect this to gain momentum, gradually, as wages continue to grow faster than inflation. 📈 - Germany's greatest economic challenge is the expected shrinking of the labor force over the next five years. A big wave of baby-boomer retirements is coming and immigration is unlikely to fill the gap. To deal with this, ambitious reforms are needed to boost labor supply and raise pfroductivity. 🧓 - To boost labor supply, the authorities should expand access to more reliable childcare and lower taxes on secondary earners in married couples, both of which would let women extend their working hours from part-time to full-time, if they choose to do so. 👷‍♀️ - Productivity could be raised by increasing public investment, deepening the European single market, promoting digitalization, and cutting red tape. 🛫

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