IMF: Old-age dependency rates exceed 30% in advanced G20 economies

The International Monetary Fund (IMF) reports that old-age dependency ratios in advanced G20 economies have surpassed 30% in recent years, driven by persistently low fertility rates. The IMF found that more than half of these advanced economies lack adequate policies to address the challenges of population aging and low birth rates.

Inadequate policy responses, such as a lack of healthy aging initiatives or reforms to increase workforce participation among older adults, are identified as significant obstacles to expansion in several European Union economies and South Korea. Demographic shifts are also impacting emerging G20 markets, with China identified as a country where insufficient policy responses hinder growth.

Additionally, the study notes that approximately half of advanced G20 economies and three-quarters of emerging markets face constraints due to excessive regulation in labor, product, or consumer protection markets. Within the European Union, regulatory and licensing discrepancies continue to create internal barriers to the free movement of workers, capital, goods, and services.