MANAGED FUNDS Max Riaz
The burden of an ageing demographic has far-reaching consequences. It impacts the supply of labour and inflation, and brings with it lower economic growth, fiscal instability of government budgets – leading to forever more government borrowing and risks to credit ratings – and weaker geopolitical influence. These consequences need to be considered when allocating capital to different markets in investment portfolios.
The great industrial powers of Germany, Japan and China face significant demographic challenges characterised by lowto the United Nations World Population Prospects, by 2050 each of these countries is projected to have a population with the median age exceeding 50 years.
