Demographics and its Impact
Demographics refers to the characteristics of a population. Like age or income or education or a combination of some attributes. Depending on the context, it could refer to different attributes. Age has become one of the most important demographic parameter when evaluating future economic prospects of countries. Simply put, one looks at the age distribution of the population. And if the number of people in the working age is going to shrink in a country, it’s very likely that the country will get poorer in the long run. Strangely, that is especially true for developed countries. Why? Because their increasingly aged population will draw more and more on their healthcare and pension facilities even as the younger set contributing to that kitty decreases . Today, one in five Japanese and Europeans are over age 65. As per UN estimates, in 2050, that ratio will be one in three. That would inevitably stress their healthcare and pension systems further, require a raise in retirement age and ...