Germany’s aging population is dragging on its economy—all of Europe will soon be affected, and it’s only going to get worse

Germany’s economy has struggled lately, with weak demand and high energy costs blunting growth. But its greatest long-term challenge is likely from a demographic crisis that began decades ago.

Like most developed societies, Germany’s population is getting older, which means relatively more retired people and fewer workers—a combination that threatens economic growth and public finances.

The impact is mild for now, but as the International Monetary Fund warned in a report Tuesday, population aging could cause significant pain a few years…