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Do demographics affect the economy?This situation provokes anxiety and concern in the world economy by the impact that is expected have in the economy. The Bank of Spain says that "various factors point to a significant reduction in the rate of potential growth of the Spanish economy in the medium term, which could be 1.2% in the period 2020-2025 before the rates of close to 3% during the period 2001-2008 environment These factors include the impact of population ageing which, according to current forecasts by INE, would lead to a fall in the population of 0.2% per year in the period 2020 - 2025 ". With this statement, it is clear that aging has a direct effect on economic growth of a country.Some more direct effects of the ageing of the population has on the economy include: slower economic growth An imbalance in the public accounts The distortion of monetary policies The concentration of consumption in a few goods and services.
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