When we talk about whether the Eurozone economy is in a soft patch or the start of a protracted downswing, it’s often overlooked that several structural challenges are threatening to lower potential growth. Ageing is clearly one of them. Focusing on developments of the labour force as opposed to overall population growth shows the Eurozone workforce will hit retirement later than some expect. But rest assured – it will hit it.
Just look around, the Eurozone is in the middle of the grey revolution. The demographic change statisticians have been predicting for a long time, has already started. According to Eurostat estimates, the working age population started to shrink in 2009 and these estimates already take into account some continuing immigration over the next few
decades.
