Report
The vicious circle that starts from population ageing
We take the examples of three countries (regions) where population ageing is very significant, the euro zone, Japan and China, and we show, by comparing these three countries (regions) to the United States, that population ageing generates a vicious circle: low potential growth, due to the decline in the working-age population and low productivity gains, which is linked to population ageing, leading to weak corporate investment and direct investment from abroad, and this weakness reinforces the negative effect of population ageing on growth.
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Natixis
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