Ageing populations a 'ticking time bomb' for GDP growth, says EBRD
NegativeFinancial Markets
- The European Bank for Reconstruction and Development (EBRD) has highlighted the potential economic risks posed by ageing populations, describing them as a 'ticking time bomb' for GDP growth. This warning underscores the urgent need for reforms to address the challenges associated with an increasing number of older individuals in the workforce and society.
- The implications of this warning are significant for economic stability, as failure to implement necessary reforms could hinder growth and exacerbate existing economic disparities. The EBRD's concerns reflect a broader anxiety regarding the sustainability of economic systems in the face of demographic shifts.
- This situation is compounded by the political landscape, where older voters and leaders may resist reforms aimed at addressing these demographic challenges. Such resistance could lead to a downward economic spiral in parts of Europe, highlighting the tension between the needs of an ageing population and the imperative for progressive change.
— via World Pulse Now AI Editorial System
