Beyond Demographics is Destiny: Understanding Economic Mitigation Strategies for Demographic Change in China

The favorable demographics that have contributed to Chinas rapid economic growth are changing. Chinas working-age population is currently peaking and within two decades its overall population will begin to shrink. In addition to a shrinking working-age population, China will see an increase in the elderly population and a rising dependency ratio. This demographic change may have an economically significant impact. If Chinas enormous stock of labor and low dependency ratio were key elements in its rapid economic growth, then some economists conclude that the reversal of these elements will have detrimental effects on the Chinese economy.