In France, the protest against the pension reform that the government wants to impose has not abated. But other countries may need to take similar measures, as population aging – and the economic problems it will entail – is no longer a theoretical challenge.
Why is this important?When we talk about population aging and its economic challenges, we usually think of China or Japan, where the birth rate is so low that its effects are already reflected in growth prospects. But the problem is global, and European in particular.
Impact of aging on the budget
Rating agencies are sounding the alarm: higher interest rates have given the rise in pension and healthcare costs an extra boost. This, in combination with the aging of the population, will soon put pressure on economic growth in many countries.
- Moody’s, S&P and Fitch, the top three rating agencies, are forecasting a likely continued series of economic rating downgrades of some industrialized countries.
- Now d
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