Deutsche Bundesbank official Andreas Dombret has warned against letting "upbeat projections" for German growth in the next few years "lull us into a false sense of security".

Dombret, an executive board member, warned the country's long-run outlook was "clouded" by demographic developments and the negative implications they pose to potential growth. He noted the parallel with Japan.

"If we want to keep our economies wealthy, we will need to address the root causes of declining prosperity and