Germany witnessed a notable decline in childbirths last year, hitting its lowest level in a decade with 693,000 newborns, marking a 6.2% decrease from the previous year. This decline, reflective of broader economic challenges and tighter fiscal policies, compounds the demographic hurdles confronting Europe’s largest economy.
The diminishing birth and marriage rates further compound concerns about aging populations and shrinking workforces throughout the continent. Economists warn that persistent declines in birth rates may strain labor markets and impede economic growth, particularly as the “baby boomer” cohort transitions into retirement.
Various factors contribute to this decline, including the lingering effects of the pandemic and subsequent crises such as the Ukraine conflict and high inflation, which create an environment less conducive to family planning. Despite previous government initiatives to enhance childcare and parental leave benefits, recent budget limitations and labor scarcities have hampered progress.
Germany’s fertility rate, recorded at 1.46 in 2022, aligns with the EU average but falls below the replacement level of 2.1. The drop in birth rates is more pronounced in eastern Germany compared to the west. Additionally, the country experienced population stagnation during the pandemic, with a slight increase in 2022 attributed to immigration from Ukraine following the Russia conflict.
In response to the shrinking labour force, Germany seeks to attract 400,000 immigrants annually by implementing new visa programs to appeal to skilled workers. However, demographic shifts and an aging population are expected to temper economic growth, with forecasts indicating a slowdown compared to previous years.