Slowing German trend growth does not seem to be a major issue in the electoral campaign
The developed industrial countries have experienced a steady decline in trend growth since the mid-70s – and Germany is no exception. The robust cyclical upswing is veiling this creeping erosion of growth.The demographic developments will considerably weigh on trend growth in the medium and the longer term. They will dampen labour supply, capital formation and total factor productivity. By 2025, trend growth looks set to halve again, to only ¾%. The electoral programmes of the established parties incorporate different positions on this key issue, as is to be expected.

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Bundestagswahl 2017
Brexit
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