Migrants and the German economy: 5.8 trillion euro deficit due to mass migration - study

Migrants and the German economy: 5.8 trillion euro deficit due to mass migration - study

According to a report by weltwoche.ch, mass migration in Germany could cause an overall economic deficit of 5.8 trillion euros. The renowned economist Bernd Raffelhüschen from the University of Freiburg comes to this conclusion in a recent study. According to his analysis, Raffelhüschen refutes the widespread assumption that immigration is a lifeline for German pension and social security funds. He states that there is an existing “sustainability gap” in German society, which arises between the taxes paid in and those paid out in the future, as well as social security contributions.

According to Raffelhüschen's calculations, this gap would grow to 19.2 trillion euros if Germany were to accept 300,000 migrants annually. Without further immigration it would be 13.4 trillion euros. The economic expert says that migrants need an average of six years to be integrated into the German labor market. During this time they hardly contribute to the social system. And even after this integration phase, their financial investment would remain behind that of the local population due to lower qualifications and the resulting lower income.

Based on Raffelhüschen's findings, mass migration could have long-term effects on the German labor market and social system. The integration of migrants into the labor market takes an average of six years, during which they make only a limited contribution to the social system. Even after this phase, their income is often below that of the local population, which could lead to long-term financial strain on the social system. These findings could lead investors and companies to rethink their long-term planning and investments in Germany, which could have an impact on the financial market. However, it remains to be seen how politicians will react to these findings and whether they will take measures to mitigate the potential negative effects of mass migration on the German economy.