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Ifo Warns Germany to Plan for 10% Population Drop by 2070

Ifo urges policymakers to fold the steeper, aging-driven outlook into long-term health and care planning.

Overview

  • Germany’s revised official projection, updated with 2022 census data, now anticipates a roughly 10% population decline by 2070 versus 2021 after earlier models showed about 1%.
  • Ifo attributes the downgrade mainly to lower expected births through the late 2030s and reduced net migration assumptions in the new forecast.
  • The institute projects stark regional gaps, with eastern non-city states down about 22%, western counterparts down about 9%, and city-states seeing slight growth by 2070.
  • Ifo warns that a smaller, older population will deepen labor shortages, intensify pressure on the pension system, and increase demand for health and long-term care capacity.
  • Ifo also notes likely lower needs for housing, some transport infrastructure, and public-sector staffing, and points to a revised base population of 81.9 million versus an earlier estimate of 83.2 million.