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China Demographics: The New Timebomb

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I was discussing Asian demographics last night with an old colleague, and the issue of NE Asian fertility (or lack thereof) arose. Japan is 1.2, and the looming "Gray Dawn" there will present serious challenges. However, Taiwan's rate is 1.1. So where does that put Taiwan?
China is usually this elephant in the room, and their demography is no exception. China's fertility rate is currently 1.7, but the effect of the one-child policy, and the expected 70% increase in the burden of elderly on the workforce by 2040 is expected to place more downward pressure on this number.
Could demography snuff out China's growth before it even gets started? Will the need for pharmaceuticals, nursing care, doctors, nurses, etc. so overwhelm China that it cannot focus on growth?
A detailed article on Wikinvest spells out the consequences of the current situation.

It is usually assumed that 80% of GDP growth comes from population growth....so where does that leave China in the long run? And wouldn't that imply that countries like Indonesia and India are much better positioned in the longest of terms for the next 20-40 years?

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