BCA Research has published a special report about the economic implications of an aging global population:
- Global population growth has nearly halved over the past forty years and the labor force is expanding very slowly.
- Health among the elderly in the OECD has been improving, but not quickly enough to compensate for the secular impact of aging.
- The reduced labor force participation rate among the 16-24 age cohort is reflective of deep social changes that won’t be easily reversed.
- A smaller potential workforce will not turnaround the slowdown in real wage growth because of technological destruction.
- An aging population and economic growth in the developing world will create an almost insatiable demand for health care services and products.
- Entitlement will increase as government revenues will be under pressure. Taxes have to rise.
- A more serviced based economy will have less need for energy.
- A smaller workforce means also a slower growing economy, as Japan is already experiencing.
