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Could Current Demographic Trends Be A Negative Influence On Economic Growth?

9 May 2016 No Comment

canstockphoto22360719In the 21st century, the study of international demographics has reached a new and extremely sophisticated level. Demographic trends are studied by thousands of professionals in every branch of industry all across the world. Although demographic studies rarely make international headlines, it is nonetheless true that some of the conclusions that these experts are coming to are cause for definite concern. If even a few of them turn out to be accurate, the state of international finance and industry could due for a period of some radical and rather uncomfortable readjustments.

Negative Demographic Trends Are a Cause for Major International Concern

Some of the most unsettling negative demographic trends revealed by international studies are already a cause for major concern in the industry. For example, there does exist a very noticeable decline in the population of working age people in more than a few countries. If not checked in time, such a development could lead to a sharp loss in the economic growth potential in these regions, thus shifting the balance of growth into new and unforeseen areas of the world. The loss of economic balance in these regions could, in turn, lead to a series of disasters that could shake the global economy as a whole.

New Studies Suggest That Prompt Solutions Are Being Called For

Perhaps the most important result of these demographic studies is the conclusion that prompt and effective solutions are called for. International investment firms, such as Fisher Investments among many others, bear a responsibility to their clients to develop new solutions in order to keep the climate of investment and growth in order. While such solutions are slow in coming, there is no need at the moment to despair of them. New solutions can be proposed that take into account these negative demographic trends in order to propose feasible alternatives to the present style of investment in these areas.

Resistance to Global Narrowing Of the Economy Is Necessary For Growth

International experts, as well as the top leadership of global investments firms such as FI, are agreed that the finding solutions to these negative demographic trends is an absolute must. The dearth of viable economic growth in entire large swaths of the global economy is a trend that must be resisted and, if possible, corrected if the viability of these areas is to be preserved.

The fact that long developed markets are facing a sizable decrease in working age individuals, accompanied by the fact that more and more of the presently working population is aging rapidly, is a definite warning sign. This is a trend that could lead to serious repercussions if not properly studied and addressed.

Developing New Ideas to Correct the Negative Trajectory of Demographics

The sobering evidence provided by these recent demographic reports has given the investment industry a great deal to think about. While some companies are engaged in shifting the focus of their activity in response to the publication of these new studies, others are working to develop new solutions to the negative economic trajectories these studies have revealed. In many ways, the future of economic growth and investment advice is bound to be tied closely into the search for new and viable solutions to these pressing demographic issues.

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