Falling fertility rates pose major challenges for the global economy, report finds

Falling birth rates worldwide are ushering in a significant demographic shift with far-reaching implications.

By 2050, a vast majority of countries, including major economies like China and India, are projected to have birth rates below replacement level, which is 2.1 babies per woman.

This means that these nations will experience shrinking populations.

This demographic shift has profound social, economic, and geopolitical consequences.

In advanced economies with aging populations, declining workforces may lead to a slowdown in economic growth and challenges in areas like healthcare and social welfare.

AI and robotics advancements may mitigate some economic impacts, but sectors like housing could still face difficulties.

On the other hand, low-income countries are projected to continue experiencing higher birth rates, with sub-Saharan Africa accounting for half of all new births by the end of the century.

This puts these countries in a stronger position to negotiate migration policies that favor their workforce and address the increasing vulnerability to climate change.

As the global population continues to grow, peaking at 10.4 billion in the 2080s, the demographic shift will reshape relationships between countries, including aid networks and migration patterns.

The report emphasizes the need for nations to adapt to these changing demographics through thoughtful policies that balance the challenges of aging populations and the opportunities presented by younger, growing populations.