The demographic timebomb

Many forecasters rightly pointed out at the beginning of the financial crisis that the recovery would be very slow by historical standards as it would take years to work off the huge debt accumulated during the bubble.

Another future headwind for the world economy – one that will outlast the hangover from the credit crunch – is that populations are ageing.

This implies not only fewer workers producing less national income, but also heralds an era of increased volatility, says Andy Mukherjee on Breakingviews. The ratio of middle-aged people – 45- to 54-year-olds – to those in their 20s is [...]

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