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Will Demographic Headwinds Hobble China's Economy?

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Abstract

China’s population is only growing at a 0.5 percent annual rate, its working-age cohort (ages 15 to 64) is shrinking, and the share of the population that is 65 and over is rising rapidly. Together, these trends will act as a significant restraint on the country’s economic growth. Nonetheless, there are reasons to conclude that growth will remain relatively strong going forward, most notably because the ongoing shift from rural to urban jobs will continue to boost labor productivity for some time to come.

Suggested Citation

  • Hunter L. Clark & Thomas Klitgaard, 2018. "Will Demographic Headwinds Hobble China's Economy?," Liberty Street Economics 20180815, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:87272
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    More about this item

    Keywords

    China; demographics; growth; dependency ratio; working-age population;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment

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