An Aging Population in Asia Creates Economic Challenges

Author
Andew Mason, Sang-Hyop Lee, Donghyun Park
Content Type
Commentary and Analysis
Institution
East-West Center
Abstract
Elderly populations in Asia are expanding more quickly than other age groups. This shift in population age structure had two major impacts: demand for income support for the elderly will rise because their labor income tends to be extremely low; and gross domestic product (GDP) and other aggregate economic indicators will grow more slowly as growth in the effective labor force declines. In countries where government programs play an important role in old-age support, tax rates will have to rise or benefits will have to be curtailed or both—all options with significant political costs.
Topic
Demographics, Labor Issues, Population, GDP, Economy
Political Geography
Asia, Asia-Pacific