Baby Come Back

Families used to be a lot bigger. A multi-decade trend of declining birth rates has seen advanced economy populations flatline in recent years. The global population, even including poorer countries, is expected to peak in the decades ahead. While the implications of a declining global population are slow burning, we could see some impact on markets in the next decade, particularly with respect to policy settings. Regardless, the consequences of a falling population are so substantial it is worth thinking about well in advance. In this month’s Market Insight, we delve into demographics on why populations will shrink, what it means for markets and if there is anything that can be done about it.