This chapter deals with the demographic and economic development in Germany and its federal states Hamburg and Mecklenburg-Western Pomerania between 2005 and 2030. It contains a common demographic-change framework and projection as input for all infrastructure models used or constructed within the InfraDem project. Germany is likely to experience ageing and shrinking of the population, but with large regional differences. For example, demographic change is expected to be exceptionally weak in Hamburg and particularly strong in Mecklenburg-Western Pomerania. The labour force is shrinking more strongly than the total population all over; it could even shrink in Hamburg, where the total population is still growing. The number of households is projected to increase and their size to decrease. Ageing is occurring within the smaller households; larger households (three and more members) stay young or are becoming even younger. The gross domestic product is expected to grow both in total and per capita, but at diminishing rates, and in regions with strong demographic change to a lesser extent.