In particular, we should take into account that the likelihood of malign property bubble formation is much greater in the population dividend or demographic bonus phase, while the negative impact of the collapsing bubble is far severer in the phase of the burden of an ageing population, or demographic onus. This is particularly important in some emerging economies.
Chart 7 shows the situation in Brazil (7.1), China (7.2) and Korea (7.3). In Brazil, the peak of the working age population ratio is a decade away, but house prices and credit expansion are skyrocketing toward it, indicating the possible risk of a future malign bubble.