Germany’s population is projected to shrink by nearly 5 per cent within 25 years — a significantly steeper decline than previously forecast, according to an Ifo study.

The German economic think-tank on Tuesday revised its forecast for a 1 per cent population decline by 2050 to nearly 5 per cent — a drop that would leave Germany with its smallest population since 1990. The revision is based on updated figures from the country’s statistical office.

“Demographic change will have significant effects on all areas of the economy and society,” Ifo economist Joachim Ragnitz warned in the study.

Here is more from the FT.