Did you know that the global population is on track to reach 9 billion in the next 15 years? Countries in Asia and Africa are growing rapidly and some areas are expected to double in the coming years! As the population grows, it can affect the economy in both good and bad ways as we have seen in the past.
One of the main issues the economy faces as the population grows are labor shortages. By 2030 surpluses are set to become shortfalls and that can risk nearly $10 trillion. With more people living longer, the need for assisted living facilities, pharmaceuticals, and hospitals booms, but this means more stress on already stressed industries. What’s more, our population has already slowed global GDP growth, and with the 9 billion milestones in sight, it is predicted it will continue to slow.
On the other hand, a growing population is not inherently negative. An older population increases overall productivity. With more people who are living longer, our capital grows since so many people are able to work at one time. Large countries can also lead to an increase in multinational corporations. These corporations and affiliates have already proven to be beneficial with 36% of global output coming from multinational corporations in 2016 alone.
The growing population will have many lasting effects on the economy. Learn more about these changes in the infographic below: