The report cuts global growth forecasts to 2.8% (6.2% for India) from its earlier January 2025 update due to trade tensions and policy uncertainty and recommends policies favouring healthy ageing enabling participation of older individuals in labour force.
Key Observations
- Economies worldwide are aging rapidly: Due to declining fertility and rising life expectancy crossing their demographic turning point and shifting from demographic dividend to demographic drag.
- The average age of the world’s population is projected to increase by 11 years between 2020 and the end of the century.
- Healthy Ageing: Alongside increase in longevity, the functional capacity of older individuals has improved over time.
- 70 year old in 2022 had the same cognitive ability as a 53 year old in 2000.
Benefits of Healthy Ageing
- Impact on Global GDP Growth: Healthy aging is projected to add 0.4% point to global average GDP growth over 2025–50.
- The contribution from India would be large as the share of workers aged 50 and older is to grow faster in that period.
- Impact on Labor Force Participation: Targeted health policies enable older workers to increase their labor force participation rates.
Policy Recommendations on Healthy Ageing
- Comprehensive Approach: Combining pension reforms, training, workplace adaptations, with health-oriented interventions to increase effective retirement ages.
- Reducing labor force participation gaps: Fostering higher female labor force participation through improved work-life balance, affordable childcare, etc., to counter demographic headwinds.
