Baby Boom?

Preliminary statistics released this week for the first nine months of 2007 showed that 4,987 more babies were born compared to the same period last year. The Federal Statistics Office, which released the data, said it was an increase of around 1 percent, as cited by Reuters news agency.

The Statistics Office had originally said that the decade-long trend of declining birth rates had continued into the first half of this year, with births actually decreasing 0.3 in that period.

Federal authorities said they were unsure why the trend reversed in the third quarter, but Dieter Emmerling, a spokesman for the statistical office, told Reuters that July and August are normally the months with the most births.

More deaths than births

Germany faces a serious problem with its dramatically aging population. The rise in birth rates comes after the government introduced a subsidy in January to encourage working parents to have children.

The birth rate has declined every year since 1997, with the number of births falling to 673,000 last year -- more than 13,000 less than the previous year and the lowest since unification in 1990.

Birth rates are slightly higher in eastern Germany compared to western states. In 1990, the birth rate was 1.45, according to AFP news agency. Now, it stands at 1.3 per woman.

The decline is threatening Europe's largest economy. With a population of 82 million, Germany's low birth rates mean average ages are increasing, causing the country to worry about its development. In the first half of this year, 95,600 more people died than children were born.

According to Reuters, German economic growth reached 2.7 percent in 2006, the strongest since 2000. Part of the growth is attributed to Germany hosting the World Cup -- an event which many believe helped to lift the nation's morale.