Asian countries now enjoy ample labor forces, but rapid aging coupled with low birth rates will inevitably present these countries with demographic adversities in the next decade or so.
In fact, the ratios of working-age population to total population are nearing their peaks in many Asian countries, which means that the size of the labor force relative to population in these economies will start diminishing in several years (Chart 2). These demographic changes could constrain economic growth from both the supply and demand sides.