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Declining Population Could Reduce Global Economic Growth By 40%
Declining population growth that shrinks the pool of available labor over the next 50 years will reduce by 40% the rate of growth in global economic output for the world’s 20 largest economies compared to the past 50 years, according to a new study. The report from the McKinsey Global Institute says that to compensate for the drop in the growth of the labor force, productivity needs to accelerate 80% from its historical rate to keep global growth in gross domestic product from slowing. Over the past 50 years, global growth increased six-fold, and average per capita income nearly tripled. McKinsey researchers ... (full story)