"Ageing trends will slow economic growth and raise fiscal demands of countries to support the needs of the elderly such as health care and pensions," said S&P Global Ratings Asia-Pacific economist Vishrut Rana.
The working-age population in Southeast Asia (SEA) is expected to slow to about 0.9% annually from 1.4% over the past decade, according to an S&P Global Ratings report. This might lead to a future where economies can’t grow fast enough for the public sector to pay for increased pensions and public health needs, with growth projected to be 0% at around 2040.
The region’s GDP is also expected to slow 0.25 to 0.3 percentage points every year over the next decade.
