However, it is often overlooked that exchange rates move endogenously in response to changes in the economic outlook and market sentiment. For example, the recent appreciation of the euro area reflects to an important extent a more benign assessment of the economic outlook vis-à-vis the rest of the world.
Young demography offers us an opportunity, but addressing the challenge of creating adequate productive employment opportunities will determine how best we are able to reap the demographic dividend. Estimates of United Nations suggest that by 2041, working age population in India will increase by 312 million, while in China it will decline by 126 million.