### Summary
Last week, Moody's warned that China's aging population will impact demand for homes, reduce the labor pool, and have an impact on competitiveness. Age dependency ratios in China are increasing, indicating a higher need for healthcare services and pension payouts.
### Facts
- Moody's warned that China's aging population will be a drag on economic potential if policy measures fail to boost the birthrate and promote productivity.
- China's aging population will impact demand for homes and reduce the labor pool, leading to higher wages and a negative impact on competitiveness.
- Demographics will support housing demand in Indonesia and Vietnam over the next decade, while China experiences the opposite trend.
- The age dependency ratio in China has been increasing, indicating a higher need for healthcare services and pension payouts.
- India's growth trajectory has not been significantly impacted by demographic factors historically, but efforts to maximize productivity and create opportunities can change that.
- Technological and institutional innovations can ameliorate the effects of population aging.
- India has an opportunity to tap into China's worsening demographic and seize the moment, potentially surpassing Vietnam and Indonesia.
(Source: Hindustan Times)
China's youth unemployment rate has reached record highs, with many young people refusing to find jobs they deem unattractive, leading to the rise of "full-time children" who rely on family support, while others are forced into unstable and low-paying jobs in the platform economy; experts warn of the long-term impact on mental health and productivity.
Despite concerns about declining birthrates, the author argues against anxiety over population trends, stating that it is impossible to determine the optimal world population and predict future trends. They also suggest that rising affluence and technological advancements could potentially mitigate the burden of large families, and highlight the shifting anxieties over the racial mix of the world's population. Ultimately, they caution against viewing other cultures as abnormal based on one's own upbringing and emphasize the need for policies to address underlying issues rather than explicitly boosting fertility.
China's economy has faced numerous challenges in 2023, including deflation and a property crisis, but another significant threat is the increasing number of wealthy individuals leaving the country, contributing to a brain drain.
China's economy is facing potential decline due to high debt levels, government interference, and an aging population, with warnings of a full-blown financial crisis echoing the 2008 US recession. Failure to liberalize the economy could have long-term consequences, as foreign investments are restricted and the lack of capital inflow and outflow could harm businesses.
China's "demographic dividend," once believed to contribute to its economic success, may not have existed as a new study suggests that the quality of the workforce, rather than the quantity, was the main driver of GDP growth, indicating that demographic changes in the future may not be disastrous for China's economy.
China's economic growth appears to be slowing down, with issues such as an aging population and a collapsing housing sector leading to speculation that the country's economic miracle may be coming to an end, while its diplomatic strategies have also caused strain on international relationships.
The number of births in China hit a record low last year, dropping by 10% despite government efforts to support parents and concerns about the country's demographic balance.
