PARIS: As populations age around the world, economies will be held back and growth trends will slow sharply in the next 20 years, a report forecast on Thursday.
The mismatch of old people to the numbers of people at work is no longer a shadow only over advanced economies; it now extends to emerging markets as well, a report by rating agency Moody’s said.
This demographic time bomb, and related drop in household savings, could reduce the trend of annual growth worldwide by 0.4 per cent by 2019, the agency warned. Between 2020 and 2025 the impact could be “much larger”, amounting to 0.9 per cent, it said.
Analyzing the impact of a major shift in the age demographics of workers around the world, the agency said that more than 60 percent of countries which feature in its credit ratings will be classified as ageing by next year, with more than seven per cent of their populations aged over 65.
By 2020, it said, the number of “super-aged” societies, where more than a fifth of the population are 65 and older, will increase from three today to 13. By 2030, the number will reach 34.
US-based Moody’s monitors the resilience of public finances and issues credit ratings for government debt bonds.
Source : APP