The VoxEU blog has a nice post here on demographics and growth. We’ll return to this and related macro topics after our migration segment. For now, what is happening in China in terms of demographics? Think about how/why the above chart ties in with that.
One of the most notable points in the VoxEU blog is the change in workforce and support ratio for China. In the “near” long-run, China’s support ratio will fall, correlated with an even larger decline in workforce growth. China’s workforce growth is projected to be more than 10% negative during the coming decades. As China’s population growth also slows and social welfare benefits become more widespread, this decline in workforce will soon pose a problem for government receipts and overall economic growth