Chris Iggo: watch the demographics

Investors should keep an eye on population growth in developed countries, reckons Axa Investment Managers' Chris Iggo.

Investors should pay more attention to demographics, says Chris Iggo of Axa Investment Managers. "Globalisation, capital flow arbitrage and the adoption of universal technology and production methods" may have led to a convergence in per capita growth rates in developed countries.

However, economies still "show very different aggregate growth rates with the swing factor being the differences in population growth". While this is good news for emerging markets with "higher rates of fertility and faster population growth", it presents problems for more mature economies with "unsustainable long-term public debt ratios", with Japan and Italy the two most prominent examples.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.