Aging population threatens China’s economy

hina’s position as the world’s major supplier oflow-cost labour could be eroded by an ageing population, theauthorities have warned.  There are six workers for each retiree in China, butthat could narrow to two-to-one between 2030 and 2050, the NationalCommittee on Ageing says.  Officials say the economy will suffer as there will be fewer people working and more older people to support.  China’s low-cost labour has provided the base for its economic growth.  Improved living standards and strict family planning laws have contributed to the demographic change.  “We might encounter the heaviest burden especially after2030, when the demographic dividend is set to end,” Yan Qingchun,deputy director of the office of the ageing committee, told ChinaDaily.  “With fewer people of working age and more pressure insupporting the elderly, the economy will suffer if productivity sees nomajor progress,” he added.

Source:  BBC, http://news.bbc.co.uk/1/hi/world/asia-pacific/7149330.stm