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This essay examines the implications of demographic changes—specifically ageing and declining populations—on productivity and income in Germany, Austria, Switzerland, and Hungary. Drawing on demographic data from 1950 and projections through to 2050, the study reveals how rising old-age dependency ratios and decreasing fertility rates alter the demographic composition in these countries. Despite widespread concerns regarding the challenges posed by these trends, the analysis identifies potential avenues for economic resilience. Through technological advancements, the mobilisation of underutilised segments of the workforce, extended working lives, and lifelong learning, ageing societies may offset workforce contraction and sustain economic productivity. The essay also explores the roles of productivity-enhancing policies, automation, and increased capital investment as crucial strategies for mitigating demographic pressures. In conclusion, while demographic changes present significant challenges, a strategic focus on innovation, workforce participation, and adaptability offers viable pathways for sustaining income and productivity in ageing societies.
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