One factor explaining German economic performance is that Germany is unencumbered by expenditures on youths and the elderly, two non-economically productive groups. The bulge of Germany’s population is in the most productive working age cohort of around 35 to 55 years old, and this dynamic is great for overall productivity and output. However, while Germany will remain in this prime demographic position at least for this decade, as the most productive segment ages and moves toward retirement, the health care and pension outlays needed to accommodate their retirement will place great stress on the German state's finances.
