Weak economic activity is not likely
Owing to the high
competitiveness of German companies and structural problems in many
European countries, a period of weak economic activity is not likely to lead to a
slowdown in labour migration to Germany.
On the contrary, a slowdown in
economic growth could have a much lesser impact on the German labour
market than on countries that already have a double-digit unemployment rate.
Germany’s broader fiscal latitude could help to quickly re-ignite economic
growth.
Therefore, migration to the German labour market could endure just as
much as the extensive housing shortage in Frankfurt and other major German
cities for many years.
EU Forecast
euf:ba18.c:104/nws-01