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An Aging Population in Asia Creates Economic Challenges

by Andrew Mason, Sang-Hyop, and Donghyun Park

East-West Wire

Publisher: Honolulu, HI: East-West Center
Publication Date: 8 May 2020
Binding: electronic
Pages: 2
Full Text: click here
Free Download: PDF

 

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.