Stories
How Global Aging Population and 2029 Demographic Shift Will Transform the Economy
C
CNBC Awaaz•06-10-2026, 09:21
How Global Aging Population and 2029 Demographic Shift Will Transform the Economy
- •Moody's warns that Europe's population could peak around 2029 and begin declining thereafter, increasing economic pressure.
- •The ratio of working people to elderly in G7 countries is projected to drop from three to two by 2050, impacting pensions and healthcare.
- •A shrinking workforce and fewer consumers can reduce productive capacity and weaken market demand, slowing economic growth.
- •While AI and robotics can help mitigate labor shortages, they cannot solve the problem of a shrinking consumer base.
- •Emerging economies like China, Brazil, Thailand, and Turkey are also aging rapidly at much lower income levels.
Key Questions Answered
According to European Commission estimates, the population of the European Union could peak around 2029 before starting to decline.
Currently, G7 countries have about three working people for every person aged over 65, but Moody's projects this ratio will drop to about two working people by 2050.
Moody's expert Olivier Shamhla notes that AI and robotics can partially mitigate labor shortages by making human labor easier and faster in factories and services.
