Pi-Consulting

That old fear about a worldwide population explosion? Now it’s the opposite that makes us nervous, the onset of population decline. More and more countries find themselves the victims of population shrinkage. Russia’s head-count projects to fall by 22% in the next 45 years, while Ukraine’s is set to shrink by an astonishing 43% in the same timeframe. Japan has already started to contract as mortality overtakes replacement levels, and Germany and Italy are soon to follow. Corporations worry about market shrinkage, but what really matters is GDP (gross domestic product) per head of population. The good news is longer life expectancy, the social and economic benefits of increased control over family size, and the chance that productivity gains will offset the decline of a country’s head-count. Population down? No cause for alarm. (Source: The Economist)