The threat of ageing population on world' top economies
I think about demographics a lot as it plays a huge role in economic development (or at least has had over the years)

Some countries are ageing more rapidly than others.

In some of the major economies like Japan, South Korea and Italy, dependency ratio is projected to increase very quickly, driven by increase in elderly population as well as a decline in working age population.

For example, in Japan by 2050, for every 100 people in age 15-64 (working age), there will be 71 elderly people (age 65+). This number is approx. 66 for both Italy and South Korea (almost 2.6x global avg)

Some of the economic implications of having a high proportion of elderly dependents can be quite severe and far reaching:

  • Decrease in tax revenue for Government
  • Stretched govt services such as state healthcare (e.g. NHS in UK) impact coverage and/or quality
  • Increase tax rate on working population to support govt. finances
  • Lower pension payouts to retirees
  • Decrease in the competitiveness of the country in the global economy

Huge challenge for policymakers going forward.

Image upload
Reasonable Yield's avatar
Truly fascinating problem the world faces with respect to population demographics.

Are there any nations you feel most bullish about between now and 2050?
Jas's avatar
@reasonableyield US and India

US because it continues to attract the best talent in the World

India because its at the right inflection point in its economic growth cycle
Joey Hirendernath's avatar
Really fascinating visual, did you create it yourself ?
Jas's avatar
@joeyhirendernath Yes. Glad you liked it.
Jensen Butler's avatar
Aging population is such a fascinating concept to go into depth about. So so many implications and shifts



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