• Germany edition
 
German economy to be overtaken by 2060
Photo: DPA

German economy to be overtaken by 2060

Published: 10 Nov 2012 13:20 GMT+01:00
Updated: 10 Nov 2012 13:20 GMT+01:00

Germany's days as the fifth largest economy in the world are numbered, according to a report by the Organisation for Economic Co-operation and Development (OECD) released on Friday.

Germany's economy - currently only behind the USA, China, Japan and India in terms of size, is set be surpassed by Brazil, Indonesia, Mexico, Britain and Russia, by 2060, predicted the organisation.

According to the OECD, the main reason for the slump in Germany's share of world economic performance - which will drop from 4.8 percent today to 2 percent in 50 years' time - is demographic change, as its population grows older - a phenomenon also due to hit Japan on a large scale.

China, set to overtake the USA in four years as the world's biggest economy, helped by a population of over 1.3 billion, has already this year contributed more to the world economy than all eurozone countries combined. By 2060 India will also have overtaken Europe, said OECD.

The organisation hopes this “shift of economic weight towards low wage countries” will help raise living standards in the poorest areas of the world. Per capita income is expected to quadruple in the world's most impoverished nations by 2060, narrowing the current gap between the living standards of the world's richest and poorest people.

“Courageous structural reforms can stimulate growth and improve living conditions everywhere in the world,” said OECD General Secretary Angel Gurría.

DPA/The Local/jlb

The Local (news@thelocal.de)

Your comments about this article

02:27 November 11, 2012 by Gottfried Falc Rittermarsch
Comment removed by The Local for breach of our terms.
05:05 November 11, 2012 by DOZ
Good lock with that. Your demise will be before 2030 unless you amalgamate with Russia. The amalgamation will include ideology. The West is falling quickly.
09:15 November 11, 2012 by ovalle3.14
Comment removed by The Local for breach of our terms.
17:11 November 11, 2012 by sonriete
I think way too much time and energy are spent debating these tables. There will always be a market for German goods and services, Germany will be fine. I don't buy this idea that every country must grow and grow in order to be competitive. What do these people propose as a solution anyway? Massive immigration to pull the population up to 200 Million? The whole world will need to face the fact that human population should be declining, not growing in order to have balance between man and nature. For populations to decline, they naturally must also age dramatically the first few decades to reach that correct balance where we do not destroy this earth.
11:16 November 12, 2012 by Berlin fuer alles
Well said sonriete. All we hear is what business needs to continue growing profits and nothing about how the earth's natural resources cannot continue to support this. If a company's profits grow at a slower rate than previously this is considered a negative. They want profits to grow at a faster pace than previously. Why should it not be positive for a company to continue making a profit even if it is less than previously? If I had a business that made one million profit in a year and the next year it made 750K profit I would still be happy.
16:53 November 12, 2012 by MrNosey
The predictions are rubbish, as always. They're based on a straightline extrapolation of past trends without bearing in mind that growth rates in the BRICS will also slow as they become wealthier. China also has a fast-approaching demographic timebomb because of its one-child policy, not to mention political troubles ahead.
20:41 November 12, 2012 by 883
MrNosey:

WELL SAID. So many seem to overlook the problems that China has looming. Long term, their concerns are some of the most daunting for them AND for other nations.
00:20 November 13, 2012 by bobmarchiano
2060 Our governments cant handle 2013 yet.

European counties will need to get a handle on Greece,Italy and Spain first.
Today's headlines
The Local List
Eight expat groups to save you in Germany
Photo: Jan Perlich/Munich RFC

Eight expat groups to save you in Germany

Think you're the only English speaker in your town or region? Think again! The Local List this week runs through eight of the best expat groups and clubs in Germany. READ  

Victims of GDR regime get benefit boost
Former GDR political prisoners Hartmut (l) and Gerda Stachowitz in a East Berlin prison which has stood empty for 20 years. Photo: DPA

Victims of GDR regime get benefit boost

Benefit payments to former political prisoners of ex-communist East Germany (GDR) will be raised to send an "important message" 25 years after the fall of the Berlin Wall, the government said on Wednesday. READ  

Cabinet agrees cap on city rent rises
Apartments in Leipzig. Photo: DPA

Cabinet agrees cap on city rent rises

Germany's cabinet agreed on Wednesday to cap ballooning property rents in high-demand urban neighbourhoods in a law set to come into force early next year. READ  

Berlin flights disrupted by WWII bomb find
Passengers are delayed at Tegel Airport. Photo: DPA

Berlin flights disrupted by WWII bomb find

UPDATE: The discovery of a US World War II bomb disrupted flights at Berlin’s Tegel Airport on Wednesday afternoon, with no flights taking off or landing for 30 minutes. The bomb has now been defused but later flights are still delayed. READ  

Refugee abuse guards 'nicknamed the SS'
A photo allegedly showing guards abusing one refugee. Photo: DPA/Police

Refugee abuse guards 'nicknamed the SS'

A group of guards who allegedly abused refugees in an asylum centre in western Germany were nicknamed “the SS” after Hitler's stormtroopers, according to one of their colleagues. Photos of guards abusing refugees have sparked a backlash in Germany against security firms. READ  

Nestle wins the food prize no one wants
First prize went to Nestle for its sugary baby food. Photo: Foodwatch

Nestle wins the food prize no one wants

A food watchdog presented Nestle with a prize to avoid on Wednesday for the cheekiest false advertising of the year. The runner-up was a chicken soup with no chicken in a vote of almost 160,000 Germans. READ  

Merkel's VIP jet set to fly soldiers home
One of the two A340 planes which are reserved for the Chancellor and government leaders. Photo: DPA

Merkel's VIP jet set to fly soldiers home

One of Chancellor Angela Merkel’s VIP jets is set to be used to ferry soldiers home who are stuck in Afghanistan, due to ongoing problems with the German military’s transport planes. READ  

German firms top EU lobbying list
Siemens was the highest ranked German company when it came to spending on EU lobbying, according to the register. Photo: DPA

German firms top EU lobbying list

Germany companies are among the biggest spenders when it comes to EU lobbying to influence decision makers in Brussels. There are more German lobbying organizations registered than from any other country in Europe but Belgium. READ  

City starts beer for alcoholics project
Photo: DPA

City starts beer for alcoholics project

A city in western Germany will start a controversial project on Wednesday to employ alcohol and drug addicts to clean the streets in return for beer, tobacco, food and small amounts of cash. READ  

Fault forces Germany to cut Eurofighters
A German Eurofighter. Photo: DPA

Fault forces Germany to cut Eurofighters

A manufacturing fault has been discovered in the troubled Eurofighter Typhoon warplanes, Germany's defence ministry said on Tuesday, announcing it was suspending deliveries of the sophisticated jets. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Munich
Bavarian independence becomes a reality... (online)
Photo: DPA/Police
National
'Criminals are at work in refugee homes'
Photo: DPA
Business & Money
Immigrants have created how many German jobs?
Photo: DPA
National
Revealed: Germany's military feet of clay
Marks & Spencer
Sponsored Article
Marks and Spencer: Win €300 toward your new autumn wardrobe
Photo: Shutterstock
Society
Quiz: How good is your German?
Photo: DPA
Gallery
Thousands take to Berlin's streets for marathon
Photo: DPA
Society
'Incest should be legal,' says ethics board
Photo: DPA
Gallery
Ten noises that sound very different in German
Photo: DPA
Society
QUIZ: Can you pass the German citizenship test?
Photo: Shutterstock
Gallery
Ten German words you'll never want to hear again
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,183
jobs available
Toytown Germany
Germany's English-speaking crowd