The state development bank KfW warns of a serious threat to German prosperity. The time of growing prosperity could be over if countermeasures are not urgently taken. To achieve this, the labor supply must be increased through immigration and other measures.
According to a report, the state development bank KfW sees serious threats to German prosperity in the ongoing shortage of skilled workers and flagging labor productivity.
“The foundation for further growth in prosperity is crumbling,” quoted the “Frankfurter Allgemeine Zeitung” (“FAZ”) on Monday from a KfW study. The bank’s chief economist, Fritzi Köhler-Geib, also chose clear words: “The combination of long-term shrinking domestic labor supply and weak productivity development represents a unique challenge that is new to us in the post-war period.”
In order to avert the gloomy prognosis, it is said that the labor supply must be increased through immigration and other measures on the German labor market. In addition, work must become more productive, for example by reducing bureaucracy and promoting innovation.