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Population growth is distorting GDP growth numbers

Gwyneth Yeo Published on Mon, Aug 29, 2016 / 8:19 AM GMT+8

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SINGAPORE (Aug 29): DBS economist David Carbon has reiterated what former Minneapolis Fed president Kocherlakota said in his recent commentary, that the difference in population growth among countries have distorted the perception of which countries are performing well and which ones are not.

Carbon goes further to emphasise that on a per-capita basis, growth in Japan and Germany has surpassed the US and France since 2007.

According to Carbon in a note on Friday, there have been no signs of a slowdown in growth in output per working age person in the G3 since 1980. The slowdowns in GDP growth were entirely due to a slower population growth.

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Population growth is distorting GDP growth numbers