Abstract
The share of working age population has declined all over the world. It is forecasted that this will continue for the coming years in all countries in South Asia. Low growth in working age population in South Asia will be effecting negatively for the economic growth. This paper studies whether the South Asia 2050 employment targets would be sufficient to compensate for the downward impact of demographic burden and whether the impact of demography on economic growth differs between South Asian countries. The results show that degreasing working age population is the main challenge the South Asian region faces. Further it shows that growth in GDP mainly depend on the demographic change. Population who contributed the economic development become maturing and dependents of their children. The consumption of the ageing population is very high as of higher spending on healthcare facilities. This effect badly on the economic growth in the region and cause lots of challenges to the nations.
Highlights
All over the world, the number of people age over 60 and above is estimated to grow gradually over the coming years
The question remains will South Asian countries be able to return to its growth route with the continuous reduction of working age population? This paper focus on the recent and expected development of labor supply on the economic growth in the South Asia, the world’s fastest growing economy in the period 2000-2050
Objective of this paper is to discuss the past and recent development in population aging on economic growth in South Asia
Summary
The number of people age over 60 and above is estimated to grow gradually over the coming years. Higher the population aging lower the economic growth of the country as the decline in working age population reduces the labor force, wages and productivity, savings and industrial investments. 62% are aged 15-59 and would be able to work and more than a quarter (28%) of the population are under 15 years old and over 60 years old (figure 1) This has been studied in several recent studies (Prskawetz, 2007; Bloom et al, 2003) and concluded that age structure matters for the economic growth. This paper focus on the recent and expected development of labor supply on the economic growth in the South Asia, the world’s fastest growing economy in the period 2000-2050. Burden for the South Asian countries and the Section four will provide the conclusions and recommendations
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