LRAS for Germany

Luke Kirchner


     According to UKessays.com, "Germany has its social market economy that is characterized by a highly qualified labor force, a developed infrastructure, large capital stock, low level of corruption and a high level of innovation". Germany is also a highly developing country, with technology at the forefront of its innovation. Over the course of the past 20 years, the GDP per hour worked has been slowly increasing in an upward trend. 2020 saw a minimal decline. This points to a gradual increase over time, showing that the quantity and quality of the factors of production are improving. 



Germany's Birth Rate has decreased since the mid-1960s, however, has stayed pretty stagnant. Because the current level is near 1970, those babies are already working, so it's safe to say that this will not go down. 
  • The current net migration rate for Germany in 2021 is 3.664 per 1000 population, a 20.9% decline from 2020.
  • The net migration rate for Germany in 2020 was 4.632 per 1000 population, a 17.3% decline from 2019.
  • The net migration rate for Germany in 2019 was 5.601 per 1000 population, a 14.74% decline from 2018.
  • The net migration rate for Germany in 2018 was 6.569 per 1000 population, a 5.8% increase from 2017.

This data shows that since 2017, the migration rate has been drastically declining. It is important to note that while it is a downward slope, it does not mean people are leaving. It just means people are not migrating as much. 

Analysis: In general, I think Germany will continue to increase in terms of LRAS. Thier workforce is both highly qualified and motivated and they are leading many sectors that are very important for Germnay's market. 


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