A super-aging society, often considered a long-term problem, is upon us and will significantly lower economic growth in the coming decades. The number of super-aged countries, where more than one in five is 65+ years old, is currently at three* but projected to hit 27 in 2030. The issues coupled with this transition are not far off.
Aging is not only a problem in the developed world, many emerging markets are already classified as aging, and will see their working-age populations decline or grow more slowly in the coming decades. Simultaneous there will be a decline in birth rates around the world. In short, there will be a greater number of people dependent on shrinking workforces, causing the global economic growth to slow down. A lot.
While this slow-down impacts societies in a major way (more pressure on pension and public healthcare expenditures for example), in some countries, like India, it means the aging of children into the workforce. This is potentially a favorable demographic trend as it can offset those countries’ aging population, and alter the distribution of global economic power.
Find out what the full impact – good or bad - is here.
*Germany, Italy and Japan