First, the labor force will decrease. According to the Bank’s research staff, assuming that the labor participation rate at any given age stays constant, the decline in the labor force caused by the demographic change will pull down the economic growth rate by 0.5% in the 2010s. The second impact of population aging is on the savings rate.
It is more propitious to say yes, but. Ôhe but refers to two factors. First, there are growing divergences in economic performance across the globe, with the result that the dividends of the recovery are not being evenly spread among the major regions of the world.