Connect with us

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website. .

Top Stories

GERMANY TO LEAD THE WAY IN EUROZONE MELTDOWN

Meltdown

Germany – Europe’s economic and political powerhouse is edging closer to its biggest ever financial crisis and it will drag the UK, France and the rest of Europe down with it. That was just one of the headlines to come out of this years Elite Investor Summit which took place earlier this month. The event saw some of worlds leading financial experts including Justin Urquhart Stewart (7IM), MoneyWeek’s Tim Price and long term financial forecaster Harry Dent come under one roof for a day of financial analysis and future forecasting.

MeltdownAccording to experts, the impending crisis for Germany will not be the fault of it’s banks, it’s big business or it’s political climate, but it’s demographics. Germany’s birth-rate has been declining for years a nd is now the lowest in the world, with just 8.2 babies born each year per 1,000 people (compare this to the UK’s 12.7). What’s worse is that the trend is still on the decline. Germany might be the production powerhouse of Europe when it comes to manufacturing, but when it comes to reproduction – they now underperform the Japanese, whose notoriously low fertility rate has long been the source of official hand-wringing. This fact alone may not seem enough to warrant such dramatic headlines, however a combination of Germany’s baby boom and bust years of the late 1950’s and early 1960’s (known as the Pillenknick) and an ever-rising life expectancy means it’s population is rapidly becoming top heavy.

birthratesvsdeathrates

And that’s a big problem. Germany has one of the highest basic state pensions in the world (£26,366 vs the UK’s £7,488) and it needs a lot of people in employment, contributing to the system to make it work. However, it’s estimated that the proportion of working-age residents in Europe’s biggest economy is will decline from 61% to 54% within the next 15 years as Germany’s baby boomers hit retirement age. That’s an exodus of 6 million people from the country’s workforce despite an expected intake of over half a million migrants per year. Look forward further to 2060 and Germany’s population is forecasted to drop from about 81 million today to as low as 68 million.

“No other industrial country is deteriorating at this speed” warned the World Economy Institute in Hamburg after completing their own study of the impending crisis earlier this year.  In fact, the situation is so serious – a number of small towns in Saxony, Brandenburg and Pomerania have already begun to contemplate plans for gradual “run-off” and ultimate closure, a once unthinkable prospect.

With this demographic tanker heading for the biggest iceberg of all time, you might expect Angela Merkel to have come up with a plan to turn the ship around. Germany’s retirement age however, was recently lowered to just 63 adding yet more strain to an already overstretched pensions and benefits system. So with the only one capable of navigating this ship through the ice field stuck down in the engine room stoking up the fire, it looks like it’s full steam ahead into one of the greatest financial disasters of all time…

Global Banking & Finance Review

 

Why waste money on news and opinions when you can access them for free?

Take advantage of our newsletter subscription and stay informed on the go!


By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review │ Banking │ Finance │ Technology. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Post