#demographicwinter

Demographic Winter: A Quiet Crisis in the Making A globe depicted with regions of varying demographic trends—declining populations represented in cooler shades (like blue) and high-growth regions in warm colours (like orange). The foreground features an hourglass with diminishing sand, symbolising time running out, while families and ageing individuals appear in the background, emphasising the…

excerpt:

This is no longer just a phenomenon in advanced countries. The global “birth dearth” has spread to developing nations as well. Nearly one-third of the 59 countries with “sub-replacement” fertility rates — those under 2.1 per woman — come from the ranks ofdeveloping countries. Several large and important emerging countries, including Iran, Brazil and China, have birthrates lower than the U.S.

In the short run this is good news. It gives these countries an opportunity to leverage their large, youthful workforce and declining percentage of children to drive economic growth. But over the next two or three decades — by 2030 in China’s case  – these economies will be forced to care for growing numbers of elderly and shrinking workforces. For the next generation of Chinese leaders, Deng Xiaoping’s rightful concern about overpopulation at the end of the Mao era will shift into a future of eldercare costs, shrinking domestic markets and labor shortages.

This scenario is already a reality in Japan and much of the European continent, including Greece, Spain, Portugal, much of Eastern Europe, Scandinavia and Germany. Adults over the age of 65 make up more than 20% of these countries’ populations — compared with 15% in the U.S. —  and their numbers could double by 2030,according to researchers Emma Chen and Wendell Cox.

In many of these countries, rising debt burdens and shrinking labor markets have already slowed economic growth and suppressed any hope for a major long-term turnaround. The same will happen to even the best-run European economies, just as  it has in Japan, whose decades-long growth spurt ended as its workforce began to shrink.