Global economic growth is increasingly reliant on debt as the working-age population declines, impacting GDP growth rates. Traditionally, GDP growth is driven by population growth, productivity improvements, and debt expansion. However, with the working-age population shrinking, particularly in developed economies, the trend growth rate has fallen to approximately 1.75%. This demographic shift limits growth potential, forcing economies to depend more heavily on debt to sustain growth, raising concerns about long-term economic stability.
Shrinking Workforce and Rising Debt Challenge Global Economic Growth
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.
