Chart: ageing and economic growth – the case of Japan7 August, 2012, 14:20. Posted by Zarathustra
Every now and then, we mentioned the impact of population ageing and economic performance as well as asset classes performances, and as readers would have noticed, ageing is part of the reasons we feel pessimistic about China’s future economic growth.
As we all know that Japan has been ageing rapidly (and their population is shrinking now), and economic growth has been non-existent (more or less) for more than 2 decades now. Within Japan, of course, there are some variations.
The chart below shows the 10-year changes of nominal GDP of various Japan’s prefectures. As you can see, the older the prefecture is, the more their economies contract. Funny enough, only one lonely prefecture (Okinawa) is showing positive growth.
Source: Bloomberg Brief