Sunday, 24 March 2024 18:54

Fertility Decline and the Global Economy

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The latest report indicates that the declining fertility rate will introduce significant demographic changes over the next 25 years, which in turn will have far-reaching effects on the global economy. Forecasts suggest that by 2050, three-quarters of the countries in the world will have a birth rate lower than what is needed to replace the population, that is, 2.1 children per woman.

 

This phenomenon will initiate transformations that will affect international relations, the geopolitical environment, and will pose new challenges in the field of migration and global cooperation.

Future Demographic Challenges

The demographic changes will have "profound" social, economic, environmental, and geopolitical consequences. In particular, the shrinking workforce in developed countries will require the introduction of significant intervention policies. Technological progress, including the development of artificial intelligence and robotics, may partially mitigate these effects, however, some sectors, such as housing, will be especially vulnerable to the negative consequences of population decline.

Solutions and Forecasts for the Future

In the face of declining fertility rates, countries will need to look for new solutions to counteract the negative effects of this phenomenon. One solution could be the liberalization of migration policy, which would allow for the replenishment of workforce shortages. Additionally, developing economies may gain importance in international negotiations, especially in the context of climate change and the need for fair migration policy. Despite the anticipated increase in the global population to about 10.4 billion people by the mid-21st century, the challenges associated with demographic changes will require cooperation on an unprecedented scale.

 

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