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.