IMPACT OF DEMOGRAPHIC AGING ON THE WORLD ECONOMY

Анотація

Population aging is one of the most important demographic processes that has led to long-term consequences in many countries of the world. For European countries, this problem is more urgent than for other countries of the world. Over the last decades, the mortality rate of the population has significantly decreased in the countries of the region and the average life expectancy has increased. Along with this, the total birth rate is below the population reproduction rate. There is also a tendency to become pregnant at a more mature age and an increase in the number of families with no more than two children. According to Eurostat forecasts, the "demographic revolution" will lead to an increase in the population by the middle of the 21st century by 10 million people, but more than 50% will be citizens over 65 years of age [1].

In addition, technology cannot compensate for demographic changes. Automation helps increase productivity, but not all industries can be fully automated. This forces companies to focus on finding new workers by attracting migrants. Countries that can adapt to this process and create favorable conditions for migration will gain advantages in the global market.

As for pension systems, the growing number of pensioners poses serious challenges. Many countries are forced to raise the retirement age and revise the structure of social benefits to avoid a financial crisis. It is increasingly difficult for future pensioners to count on government payments, so they are forced to form their own savings.

Countries with younger populations, such as India, Turkey and Brazil, have the potential for dynamic development. They are becoming attractive to investors looking for labor-intensive markets. At the same time, African countries can attract the attention of investors in the future if they manage to achieve political stability and infrastructure development. Ways to solve the problem: To mitigate the effects of aging populations and labor shortages, states are implementing a comprehensive approach. One way is through financial support for families, including tax credits, child benefits and affordable daycare, all of which contribute to higher birth rates. Educational reforms and special programs help young people acquire the necessary skills for the modern labor market, stimulating their active participation in the economy [2].

Countries are also looking to attract foreign workers through expanding migration programs, offering training and employment opportunities. This not only helps reduce the labor shortage, but also promotes the development of multicultural societies, which has a positive effect on the economy.

However, this requires technical innovation and time to adapt to new realities. Reforming pension systems is also a key factor, with governments working to change the rules for pension payments, raise the retirement age and create conditions for the accumulation of private savings to reduce the financial pressure on the state. Such comprehensive solutions help countries adapt to changing demographics while maintaining economic stability and the viability of pension systems.