It is worth mentioning that China and Thailand will be going from demographic bonus to demographic onus while they are still in the middle-income tier. Finding the appropriate response to these changes in demographics and sustaining growth poses a major challenge to the Asian economy. We could draw lessons from the experience of Japan.
One of those lessons is that demographic onus depresses economic growth through both the supply-side and demandside factors. On the supply-side, it is widely recognized that labor constraints put downward pressure on the potential growth rate.