NEW YORK: Global growth is likely to remain lower than it has historically been because aging populations generally draw more from the economy than they contribute to it.
Populations are rapidly aging in most developed countries (EFA). The proportion of the developed market population older than 60 years was roughly 15 percent in 1975, but is expected to double to 30 percent by 2025, according to United Nations estimates.
An aging population is likely to keep global economic growth muted in the years to come. An older population is usually associated with lower labor productivity levels, has a higher propensity to save, and has lower consumer spending. These factors tend to slow the output of an economy, leading to muted economic growth…