Global Fertility Rates Plummet, Threatening Economies

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Declining birth rates are leading to a “youth deficit” and potential “population collapse” in many countries, according to a recent report. By 2100, some nations could face population declines of 20%-50%.

A stable population requires a fertility rate of 2.1 children per family, but most of the world’s population now lives in countries with fertility rates below this level. This trend is particularly concerning for the future of major economies.

As populations age, younger generations will face slower economic growth and a growing burden of supporting retirees. This could erode generational wealth and challenge existing norms for income and retirement.

China, Italy, and Brazil are projected to experience significant population declines, while the U.S. is expected to see a 23% increase due to immigration. However, the U.S. will still face challenges with the increasing costs of Social Security and Medicare.

To address this demographic shift, countries must boost fertility, labor intensity, and productivity. However, increasing birth rates has proven difficult, and global productivity has declined.

Governments and economies must adapt to these trends by supporting older workers and leveraging technologies like artificial intelligence. Despite the challenges, the report remains optimistic about humanity’s ability to thrive amidst demographic changes.


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